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1. By how many basis points did the United States Federal Reserve cut its benchmark interest rates in its first significant reduction since the onset of the COVID-19 pandemic?
The US Federal Reserve's decision to cut interest rates by 50 basis points marks a strategic shift to balance inflation control with economic growth promotion. This rate cut is the first significant reduction since the Covid-19 pandemic began. By lowering interest rates, the Fed aims to combat inflation while stimulating job creation, as unemployment rose to 4.2% in August 2024. This move is expected to make loans cheaper for individuals and businesses, potentially boosting hiring and economic expansion. The Fed targets a 2% inflation rate, seeking a "soft landing" for the economy.