UNITED STATES, WASHINGTON (VOP TODAY NEWS) — The Federal Reserve has decided to cut interest rates by a quarter percentage point for the first time since October 2008.
The US Federal Reserve said in a statement this evening that it cut interest rates on federal funds to the range of 2-2.25%, compared with 2.25 and 2.50%.
He said that information since the meeting of the Open Market Committee in June, indicates that “the labor market is still strong, economic activity has risen at a moderate rate, and unemployment remained low.”
The US president, Donald Trump, preempted the Fed’s decision, attacking them: “A small cut in interest rates is not enough”;
“Given the implications of global developments on economic expectations, as well as the pressures of silent inflation, the committee decided to reduce the target range of the federal interest rate to the range of 2 and 2.25 percent,” the statement said.
The Federal Reserve confirmed that the decision to cut interest rates supported his view that the continued expansion of economic activity, strong labor market conditions and inflation close to the target of 2 percent, are the most likely results, but remain uncertain about these expectations.
According to the “Anatolia” track of the interest rate course, the Fed has carried out 9 increases since December 2015, up from the 0-0.25 percent range.
In the interest rate decision, the US Fed relies on three key elements: the strength of the labor market (job creation), the CPI (inflation), and domestic and global economic growth.
The growth of the US economy slowed to 2.1 percent in the second quarter of 2019, from 3.1 percent in the previous quarter.
This article is written and prepared by our foreign editors writing for VOP from different countries around the world – edited and published by VOP staff in our newsroom.
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