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

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 from the central bank when they need to cover immediate cash needs.

When banks can borrow money more cheaply, they are more likely to lend it out to businesses and consumers. This change makes it easier for banks to manage their daily cash flow, which can help keep the financial system stable. It also signals that the central bank wants to encourage more economic activity.