In 1st Since 2020, US Federal Reserve Cuts Interest Rate By 50 Basis Point

The US Federal Reserve cut its key lending rate by half a percentage-point Wednesday in its first reduction since the onset of the Covid-19 pandemic, sharply lowering borrowing costs shortly before November's presidential election.

The Fed's decision will affect the rates at which commercial banks lend to consumers and businesses, bringing down the cost of borrowing on everything from mortgages to credit cards.

The news will likely be well-received by Democratic candidate Kamala Harris, who has looked to highlight President Joe Biden's economic record in her race against Donald Trump.