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Chairman of the Federal Reserve, Jerome Powell (AFP)
After 10 years of steady growth, the Federal Reserve has reduced its benchmark loan rate by a quarter point for the first time since the global financial crisis of 2008, due to its uncertainty about the economy. global and weak inflation in the states. United Nations.
The Board announced the widely anticipated financial market decision to reduce the benchmark loan rate from 2.00% to 2.25%. He indicated that he was willing to proceed with further reductions if necessary and to adopt the appropriate format to support growth.
To maintain monetary stability, SAMA reduced the rate of reverse repurchase agreements used to lend money to banks, which went from 3% to 2.75%. The reverse repo rate, in which commercial banks also deposit funds with the central bank, has also been reduced in the same proportion to 2.25%. Central banks in the United Arab Emirates and Bahrain lowered interest rates at the same rate, while Kuwait maintained rates.
US President Donald Trump has repeatedly called on the Fed to cut rates, accusing it of not sufficiently stimulating the US economy. Trump wants interest rates that encourage consumers, reduce debt and boost the Dow Jones index on Wall Street to counter European and Chinese interest rate cuts.
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