The Federal Reserve on Wednesday cut its short-term interest rate for the first time in four years—a sign that the central bank no longer views inflation as the economy's primary challenge.
The Fed's Open Market Committee approved a cut of 50 basis points (a 0.5 percent reduction in interest rates). In a statement, the committee said that the move was made due to "greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance."
