The Fed just announced a jumbo-sized interest rate cut

Washington (CNN) — The Federal Reserve slashed interest rates aggressively Wednesday, announcing the first rate cut since March 2020.The bold, but not unexpected, half-point move paves the way for lower borrowing costs on everything from mortgages to credit cards.It marks a crucial milestone for the central bank’s historic& inflation& fight, which kept& rates& at a bruising 23-year high for more than a year.The decision to cut by half a point, which wasn’t unanimous, telegraphs to the world that central bankers feel a sense of urgency to provide the US& economy& with swift relief from elevated borrowing costs, considering there were blaring calls in recent days for the& Fed& to kick off the rate-cutting cycle with a bang.Fed Governor Michelle Bowman, who has frequently expressed worries about lingering price pressures, was the lone dissenter, backing a quarter-point cut instead.Fed& officials also penciled in more rate cuts by year’s end in their latest economic forecasts, compared to the single cut in 2024 that they projected in June. Central bankers also expect& unemployment& to rise higher this year to 4.4%, up from the current rate of 4.2% as of August.Despite the& Fed’s aggressive action on Wednesday, the central bank’s& inflation& battle, in the...