The United states central bank has dropped interest rates for the first time in more than four years with a bigger than usual cut.
The Federal Reserve reduced the target for its key lending rate by 0.5 percentage points, to the range of 4.75%-5%.
The head of the bank Jerome Powell, stated that though the move was “strong” but that it was needed as price rises ease and job market concerns grow.
It has been said that it will be a relief to US borrowers, who have been dealing with the highest interest rates in more than two decades.
Mr. Powell stated the aggressive action on Wednesday was intended to make sure that high borrowing costs, put in place to fight inflation, would not end up hurting the US economy.
