Speaking to reporters, Fed chair Jerome Powell said the move will “insure against downside risks from weak global growth and trade policy uncertainty, to help offset the effects these factors are having on the economy”. He added that he remained confident of the US economy and saw no sectors en route to going “bust”.
SINGAPORE (Aug 5): The US Federal Reserve has cut interest rates for the first time since December 2008, following intense pressure from US President Donald Trump to stimulate the economy. Interest rates are down 25 basis points to 2% to 2.25%, a decision made at the Federal Open Market Committee (FOMC) meeting on July 31.
The move is in line with the expectations of market watchers and was signalled ahead of time by comments made by two Fed officials. Citing concerns over global economic developments as well as muted inflation pressures, the Fed says its easing of the cost of borrowing serves to overcome possible risks from other countries.
