US cuts down interest rate in four years

The US central bank on Wednesday, lowered interest rates for the first time in more than four years with a bigger than usual cut.

The Federal Reserve reduced the target for its key lending rate by 0.5 percentage points, to the range of 4.75%-5%.

The head of the Bank, Jerome Powell said the move was strong but that it was needed as price rises ease and job market concerns grow.

On the other hand, the cut will bring a relief to US borrowers, who have been dealing with the highest interest rates in more than two decades.

According to Powell, the aggressive action on Wednesday was intended to make sure that high borrowing costs, put in place to fight inflation, would not end up hurting the US economy.