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 easing monetary policy.

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 interest rate (0.5%) to the range of 4.75% - 5.00% based on progress in inflation and risk balance.

Fed policymakers forecast that interest rates will likely continue to fall by another 0.5% 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, US job growth has recently slowed, but the figures are 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 jobs situation. Fed Chairman Jerome Powell will hold a press conference later today (local time) to discuss the policy decision and the economic outlook. This Fed policy meeting is the last before US voters go to the polls for the presidential election on November 5.

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