The US central bank just made it cheaper for banks to borrow cash

The US central bank has lowered the interest rate it charges banks for short-term loans. This makes it less expensive for banks to borrow money directly from the central bank when they need cash quickly.

When banks can borrow money more cheaply, they have more flexibility to lend to businesses and consumers. This change is a small adjustment, but it signals the central bank's stance on the overall cost of money in the economy. It can influence how much banks charge for loans and how much interest people earn on savings.