The United States Federal Reserve is expected to announce on Wednesday its first interest rate cuts since March 2020.

The Fed is holding a policy meeting on Tuesday and Wednesday.

Fed Chair Jerome Powell said in a speech last month, “The time has come for policy to adjust,” suggesting an impending rate cut.

The shift in policy was prompted by falling inflation and a slowdown in the labor market.

In August, the consumer price index fell for the fifth straight month to its lowest level in three and a half years.

The Fed has maintained high interest rates to fight record inflation in the US.

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