The U.S. central bank kicked off an anticipated series of interest rate cuts on Wednesday. The half percentage point reduction, however, was larger than anticipated. The U.S. Fed Chair Jerome Powell called the move a ‘recalibration’ to account for the decrease in inflation since last year. He also noted the economy remained strong and that the U.S. central bank wanted to pre-empt any weakening in the job market. the move was meant to show policymakers' commitment to sustaining a low unemployment rate now that inflation has eased. Policymakers have indicated further rate cuts of up to 200 basis points by 2026.