After two years of higher borrowing costs, the Federal Reserve has shifted course, cutting its benchmark interest rate to the lowest level in three years. The decision marks a turning point in the nation’s monetary policy and signals both concern and optimism about where the economy is headed.

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For consumers and businesses alike, the change raises an important question: Will lower rates be enough to keep growth steady in the face of mounting economic uncertainty?

The move responds to signs of a slowing economy. Employment growth has cooled, and more people are leaving the labor force altogether. At the same time, the Fed’s proactive rate cuts are meant to act as a cushion, making it cheaper to borrow and invest.

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