The Globe and Mail reports in its Thursday edition that the U.S. Federal Reserve has cut interest rates by an unusually large half-percentage point and signals more reductions ahead. The Globe's Mark Rendell writes that policy-makers at the Fed voted Wednesday to lower the benchmark federal funds rate to a range of 4.75 to 5 per cent. They also published a new forecast showing they expect the policy rate to fall another half percentage point by the end of the year, and a further full percentage point next year. The move marks a turning point in the global fight against inflation. The Fed had kept its benchmark overnight rate at a 23-year high since last summer, standing pat while other central banks, including the Bank of Canada, started easing monetary policy. That was partly owing to the relative strength of the U.S. economy and stubbornness of inflation. Then came declining inflation and a softening in the U.S. labour market. "The strong signal from the committee is probably that they are more concerned about the risks facing the outlook for the US economy and seeking to counter them with more easing. That to me is a negative signalling effect if ever I've seen one," said Scotiabank's Derek Holt in a note.