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‘Slam dunk’: Fed cuts rates by half of a percentage point

Matthew Cranston
Matthew CranstonUnited States correspondent
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Washington | The US Federal Reserve cut interest rates by half of a percentage point and signalled more reductions would follow, in an aggressive start to a policy shift aimed at bolstering the American labour market.

The Fed cut the overnight rate to a 4.75 to 5 per cent range in the first reduction since 2020, even though inflation “remains somewhat elevated”. The decision drew the first dissent since 2005 from a board governor, Michelle Bowman, who favoured only a quarter of a percentage point cut.

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Matthew Cranston is the United States correspondent, based in Washington. He was previously the Economics correspondent and Property editor. Connect with Matthew on Twitter. Email Matthew at mcranston@afr.com

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    Original URL: https://www.afr.com/link/follow-20180101-p5kbpx