The US Federal Reserve System (which acts as the Central Bank) has lowered its key rate for the first time in 4 years.
According to the official statement of the American regulator, the new value is set at 4.75% -5.00%.
As the TASS agency writes , the market expected such an event, given that the base rate was at its peak since 2000.
The last time the country cut the rate was in 2020, when the Fed did so to support the economy amid the coronavirus pandemic.
Later, the indicator reached its maximum – 5.25-5.50%. The reason for this was said to be the growth of inflation.
Now the regulator has lowered the figure by half a percentage point to 4.75% -5%. It explained the decision by "progress in the area of inflation and risk balance."
The Fed said that "in considering additional adjustments to the target range," it would carefully evaluate "incoming data, the changing outlook, and the balance of risks."
It is stated that many experts, including specialists from the Federal Reserve itself, expect the key rate to continue to be reduced.
They predict that this year it could fall to 4.25% - 4.5%, and next year to 3.00% - 3.25% or 3.25% - 3.5%, and in 2026 to 2.75% - 3.00%.
