The Federal Reserve might decide to reduce interest rates primarily to encourage businesses to borrow money. Lower interest rates make borrowing cheaper for businesses, which can stimulate investment and spending in the economy. When borrowing costs are lower, businesses are more likely to take loans for expansion, purchasing new equipment, or hiring new employees, which can lead to economic growth.
Reducing interest rates is generally not aimed at requiring businesses to hire new employees, limiting loans, or mandating investments in federal bonds. Instead, the goal is to create an environment that promotes economic activity.