U.S. Fed cuts interest rates despite global economic slowdown
The Federal Reserve had cut interest rates on Wednesday for the third time in the year global economic slowdown. However, the Federal Reserve signaled that there would be no further reductions unless the economy takes a turn for the worse.
“We believe the monetary policy is in a good place,” Federal Chair Jerome Powell said in a news conference following the U.S. central bank’s announcement to cut interest rate by a quarter of a percentage point to a range between 1.50% and 1.75%.
“We see the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook.”
The outlook for the U.S. economy continues to be for “moderate” growth and Powell stated that only a “material reassessment” of the outlook could drive the central bank to cut rates further from there.