Federal Reserve cuts key rate, sees healthier economy next year

The Federal Reserve cut its key interest rate by 0.25 percentage points to about 3.6 percent as policymakers said the economy shows healthier signs but still faces mixed signals on inflation and the labor market. This cut makes the Fed rate the lowest is has been in three years. Cuts can have a positive effect on the economy by lowering borrow rates. Chair Jerome Powell added that, after this cut, they will evaluate the data regarding future rate changes.

This information has been summarized, read AP News’ full coverage on the Federal Reserve interest rate cute.