The Federal Reserve reduced its benchmark interest rate by 50 basis points to a range of 4.75% to 5%, marking the first cut since 2020. This bold move, supported by 11 out of 12 Fed voters, aims to counter rising unemployment, now at 4.2%, and to bolster economic growth amid easing inflation. The rate cut is expected to lower borrowing costs for consumers and businesses, with anticipated benefits for mortgages, auto loans, and credit cards. Economists and market analysts view the cut as a positive step to support the labor market and economic stability, despite some concerns over potential risks. Federal Reserve Chair Jerome Powell indicated that future rate adjustments would be data-dependent and decided on a meeting-by-meeting basis. More rate cuts are expected by the end of the year, reflecting a shift in the Fed's policy focus from combating inflation to supporting economic resilience.