US Federal Reserve cut interest rates by 50bps for the first time since early 2020

The US Federal Reserve cut interest rates on Wednesday for the first time since early 2020, the clearest signal yet that central bankers believe they are winning their years-long battle against rapid inflation.

Fed officials slashed borrowing costs by half a percentage point, an unusually large reduction. The decision lowers rates to about 4.9 per cent, down from a more than two-decade high.