Federal Reserve cuts US interest rates for the first time in more than four years

Policymakers at the US central bank also suggested rates would be cut further before the year is out

US Federal Reserve building
Traders expect the US Federal Reserve to cut rates again
(Image credit: © Brooks Kraft/ Getty Images)

The US Federal Reserve has cut interest rates for the first time in more than four years, and signalled that more reductions will follow.

On Wednesday evening the Fed announced a cut of 50 basis points, leaving the federal funds rate at a range of 4.75 to 5%. After the announcement, policymakers at the central bank suggested rates would be cut by an additional 50 basis points before the year is out.

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Chris Newlands

Chris is a freelance journalist, and was previously an editor and correspondent at the Financial Times as well as the business and money editor at The i Newspaper. He is also the author of the Virgin Money Maker, the personal finance guide published by Virgin Books, and has written for the BBC, The Wall Street Journal, The Independent, South China Morning Post, TimeOut, Barron's and The Guardian. He is a graduate in Economics.