The Federal Reserve has made its first interest rate cut since the pandemic, reducing rates by a half-point in a significant move aimed at easing financial strain on both households and businesses.

The cut lowers the benchmark rate to a range between 4.75% and 5%, as the central bank seeks to counteract rising borrowing costs and prevent further slowdown in the labor market. Inflation, while slowly returning to more normal levels, remains a key concern for policymakers.

Fed Chair Jerome Powell is expected to address the state of the economy during a news conference later today, providing more insight into the reasons behind this aggressive rate cut and its expected impact on the broader economy.