For the first time in four years, the United States Federal Reserve has lowered the key interest rate, reducing it by half a percent to a range of 4.75 to 5 percent. This significant move aims to ease inflationary pressures and improve the labor market.

The rate cut is expected to provide relief to American borrowers and ease the financial burden on consumers who have been grappling with high living costs. Federal Reserve Chairman Jerome Powell noted that while the US economy is performing well, it remains distant from the Reserve's 2% inflation target.

This decision aligns with similar actions taken by central banks in Europe and Canada and had been anticipated by financial experts.