U.S. Federal Reserve cuts rates for first time in 10 years

U.S. Federal Reserve cuts rates for first time in 10 years


no it was widely expected but a highly
significant move nonetheless and undoubtedly music to the years of
present Trump who’s been pushing hard for it the US Federal Reserve has cut
rates for the first time in more than a decade led by its chairman Jerome Powell
of Fed policy makers voted on Wednesday in favor of cutting the Fed Funds rate
they also committed to sustained that country’s longest economic expansion in
history easing Jay reports the US Federal Reserve lowered its interest
rates on Wednesday for the first time since the 2008 global financial crisis
led by Fed Chairman Jerome Powell policy makers voted 8 to 2 in favor of a small
cut the cut widely forecast by analyst affects the cost of borrowing for credit
cards and mortgages in the US and will hover between the two percent to two and
a quarter percent range we decided today to lower the target for
the federal funds rate by a quarter of a percentage point to a range of two
percent to two and a quarter percent the outlook for the US economy remains
favorable and this action is designed to support that outlook president Trump has
long criticized a Fed and its current chair saying they’re not doing enough to
boost the American economy however according to Powell the decision to cut
rates was not affected by Trump’s constant criticisms but instead done in
to hope it boosts the US economy in the face of a global economic slowdown
through the course of the year weak global growth trade policy uncertainty
and muted inflation have prompted the FOMC to adjust its assessment of the
appropriate path of interest rates the committee moved from expecting rate
increases this year to a patient’s stance about any changes and then to
today’s action major US stock index has plunged after the announcement watchers
say Wall Street has priced in a more aggressive rate cut of half a percentage
point rather than the quarter point cut that wound up happening the smaller cut
prompted a stock sell-off and pushed bond yields higher
however with the Fed also pledging to act as appropriate to sustain the
expansion market analysts believe further rate cuts are in the pipeline
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