Charting the Global Economy: Fed Goes for Big Rate Cut as BOE Holds

The Federal Reserve kicked off its campaign to lower interest rates with a larger-than-typical half percentage-point cut, while the Bank of England decided against a second consecutive reduction.

The Fed’s rate cut, which was larger than forecasters had generally anticipated, is Chair Jerome Powell’s attempt at ensuring a soft landing for the economy. In the UK, central bankers warned investors they won’t rush to ease monetary policy as they await further signs that inflationary pressures have subsided. Neither decision was unanimous.