The Federal Reserve voted today to cut interest rates by half a percentage point for the first time since 2020 and to make a bolder start, Nick Timiraos, the Fed's mouthpiece, wrote in a new article. Mr. Powell's decision to cut rates by more than most analysts had expected just a few days ago puts the Fed firmly in a new phase of its fight against inflation as it tries to prevent past rate rises from further weakening the US labour market. "We are committed to maintaining the strength of our economy," Mr. Powell said at a press conference. "This decision reflects our growing confidence that we can maintain strong labour market momentum with appropriate adjustments to our policy stance." While some Fed officials have argued in recent weeks that the economy is not yet weak enough to warrant a 50 basis point rate cut, others have concluded that a cooling labor market this summer justifies further rate cuts because the Fed is effectively making up for lost time.