"The United States Federal Reserve will cut interest rates by a quarter of a percentage point, so they will now be between 4.00 percent and 4.25 percent, as a slowing labour market stalls economic growth. The central bank announced its decision on Wednesday afternoon. list of 4 itemsend of list Economists had widely expected a 25 basis point cut, with CME FedWatch a group that tracks probability of monetary policy decisions putting the odds at 96 percent."
"Before Wednesday, the Fed had last cut rates in December by 25 basis points, the third cut last year, taking its benchmark rate to between 4.25 percent and 4.50 percent, where it had held steady since. Federal Reserve Chairman Jerome Powell has emphasised that uncertainty in the economy has kept the Fed cautious, arguing that maintaining rates gave policymakers flexibility as conditions shifted."
"The cut comes as a response to shifting economic conditions, following a slew of weak jobs reports showing a slowdown in growth in the labour market and a slight uptick in inflationary pressures. Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low."
The Federal Reserve reduced its benchmark interest rate by 25 basis points, moving the target range to 4.00–4.25 percent, citing a cooling labour market and stalled economic growth. The decision followed several weak jobs reports showing slower job gains and a modest rise in inflationary pressures. The central bank noted that inflation remains somewhat elevated and that uncertainty about the outlook is elevated, increasing downside risks to employment. Economists had widely expected the quarter-point cut, and investors are awaiting guidance on whether the Fed will deliver two or three additional cuts later in the year as policymakers balance risks to both sides of the dual mandate.
Read at www.aljazeera.com
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