Fed imposes second rate cut in 2019, to impose more cuts when needed
Federal Reserve of the U.S.A. cut interest rates again on Wednesday to aid in maintaining economic expansion and gave further cut signals which President Donald Trump quickly rebuked.
Fed Chair Jerome Powell said the rate cut was designed to provide insurance against ongoing risks that pertain to slow-paced economic growth and unrelenting trade conflicts.
Moreover, Powel said, “If the economy does turn down, then a more extensive sequence of rate cuts could be appropriate.”
The Federal Reserve announced lowering its benchmark overnight lending rate by 25 basis points to a range of 1.75% to 2%, marking its second rate cut in 2019.
“What we think we are facing here is a situation which can be addressed, which should be addressed, with moderate adjustments to the federal funds rate,” Powell noted.
Donald Trump was quick to react to Powell’s statement and said, “No guts, no sense, no vision! A terrible communicator!”