Federal Reserve Chairman Jerome Powell has indicated that it is the right time to decrease interest rates to support the economy. Powell and other members of the Federal Reserve believe that a cut in interest rates can help stimulate economic growth by making borrowing cheaper for businesses and consumers, encouraging more spending and investment.
This decision is usually taken when the economy appears to be slowing down, as a precautionary measure to avoid a recession. The specific amount of the cut can vary, and it’s often a noteworthy event because it has wide implications for businesses, markets, and regular people’s bank accounts and investments. It’s also a signal of how the Federal Reserve perceives the current state of the economy.
