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US Federal Reserve lowers key rate by 50 bp to 4.75-5%, first time in four years

The US Federal Reserve also lowered its forecast for US GDP growth in 2024 to 2% from 2.1%

MOSCOW, September 18. TASS/. The US Federal Reserve System, which serves as the country's central bank, has lowered its key interest rate to 4.75-5% after a meeting, according to a statement on the US regulator's website.

The rate cut was expected by the market. The indicator was at its highest level since 2000. The Federal Reserve last cut the rate in 2020 to support the economy in the midst of the COVID-19 pandemic. It later peaked at 5.25-5.50% due to rising inflation.

The US Federal Reserve also lowered its forecast for US GDP growth in 2024 to 2% from 2.1%. The forecast for economic growth in the country for 2025-2027 was kept at 2%.