Washington, 19 September 2024 (dpa-AFX/MIA) - The US Federal Reserve on Wednesday announced its widely expected decision to lower interest rates for the first time in over four years, aggressively slashing rates by half a percentage point.

With the Fed saying officials have gained greater confidence inflation is moving sustainably toward its 2% target, the central bank lowered the target range for the federal funds rate by 50 basis points to 4.75% to 5%.

The Fed was almost universally expected to cut rates for the first time since March 2020, but there was some debate over whether it would lower rates by 25 or 50 basis points.

The decision to opt for the larger rate cut came as the Fed said the risks to achieving its employment and inflation goals are roughly in balance.

The economic projections provided by Fed officials at the meeting suggested the central bank will cut rates by another 50 basis points by the end of the year.

Fed officials also expect to continue lowering rates next year, with the projections indicating rates will be lower by another full percentage point by the end of 2025.

The central bank noted officials will carefully assess incoming data, the evolving outlook, and the balance of risks when considering additional adjustments to the target range for the federal funds rate.

The Federal Reserve's next monetary policy meeting is scheduled for November 6-7, with the final meeting of the year scheduled for December 17-18.