Fed lowers interest rates after 4 years

In a statement after the policy meeting on September 18 (local time), the US Federal Reserve (FED) decided to cut interest rates by 0.5%, starting a cycle of monetary policy easing.

Fed Chairman Jerome Powell speaks after the decision to lower interest rates. Photo: CNN

According to CNBC News, this is the first interest rate cut by the FED since 2020. The FED said that although inflation remains high, policymakers chose to cut the reference rate (0.5%) to a range of 4.75% - 5.00% based on progress in inflation and balancing risks.

Fed policymakers forecast another 0.5% cut in interest rates later this year, another 1.0% in 2025 and another 0.5% in 2026 to bring the benchmark interest rate to a range of 2.75%-3.00%.

According to the Fed, the US market's job growth has recently slowed, but the data is still positive. Meanwhile, retail sales and industrial production in August exceeded forecasts.

The size of the Fed's first rate cut underscores policymakers' growing concerns about the job situation. Fed Chairman Jerome Powell will hold a press conference later today to discuss the policy decision and the economic outlook. The Fed's policy meeting is the last before US voters go to the polls for the November 5 presidential election.

SOUTH

Source: https://www.sggp.org.vn/fed-ha-lai-suat-sau-4-nam-post759644.html