The Federal Reserve announced a significant cut in interest rates by 50 basis points for the first time in over four years, lowering the federal funds rate to a range of 4.75% to 5%. This decision comes as inflation has eased towards the Fed's target of 2%, with the central bank expressing greater confidence in achieving its dual mandate of maximum employment and stable prices. Despite some analysts predicting a more conservative 25 basis point cut, the Fed justified its decision by highlighting a balanced risk outlook and ongoing economic expansion. The Fed also signaled potential further rate cuts in upcoming meetings, indicating a proactive approach to monetary policy amid uncertain economic conditions. While the rate cut is expected to lower borrowing costs and support consumer spending, concerns about persistent high prices remain. Political figures, including former President Trump and Vice President Harris, exchanged blame regarding the inflationary pressures affecting American households.