Fed Announces Cut to Federal Interest Rate, Driving Stocks Up

The U.S. Federal Reserve Board on Wednesday announced a slight cut to the federal funds rate, the first cut since March of 2020, when rates were near 0%. Federal Reserve Chair Jerome Powell pointed to good data on the job market like unemployment, labor force participation and fewer job vacancies. The Fed announced a cut of 50 basis points, or half a percentage point, as economists and the market closely watched the news, making the new federal funds range 4.75-5%.