The Federal Reserve has implemented its first interest rate cut in over four years, reducing the key rate by 50 basis points to approximately 4.8% as part of a strategy to support the slowing job market and boost economic growth. This significant move, which comes ahead of the presidential election, reflects a shift in focus from battling inflation—now at a three-year low of 2.5%—to fostering employment. Fed Chair Jerome Powell indicated that additional rate cuts are anticipated later this year and into 2025. Markets reacted positively, with major stock indexes rising, although some experts caution that the Fed must maintain its aggressive approach to ensure continued economic stability. Critics highlight that the decision may also have political implications, as it coincides with the upcoming election. The Fed's actions are perceived as a balancing act to sustain growth while managing inflation expectations.