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WASHINGTON: The Federal Reserve cut interest rates on Wednesday for the first time since 2008, citing concerns about the global economy and the weakness of US inflation.
The US central bank has indicated its willingness to further reduce borrowing costs if necessary.
In a long-awaited move in financial markets, the Federal Reserve lowered the overnight key interest rate by 25% from a quarter to a percentage, in the range of 2.00% to 2.25% .
In a statement at the end of a two-day meeting of the Monetary Policy Committee, the Federal Reserve announced its decision to reduce interest rates "in light of the effects of the policy." changes in the global economy over the economic outlook, as well as weak inflationary pressures ".
He stated that he "would continue to monitor" the impact of information on the economy, adding that he "would work appropriately to promote" the growth of the economy. The US economy has been going on for a record period.
The reduction in interest rates sparked opposition from Federal Reserve Chairman Erik Rosengren of Boston and Federal Reserve Chairman Esther George of Kansas City, where the two top executives wanted to keep interest rates unchanged.
Both officials questioned the impact of the rate cut on current growth, the nearly 50-year unemployment rate and the high household spending.
On the other hand, US President Donald Trump risks being disappointed by the fact that the central bank has not lowered the interest rates that she wanted. Trump has repeatedly criticized the Federal Reserve and its president, Jerome Powell, for not doing enough to help his government in its efforts to revive economic growth.
Powell and other Central Bank officials have attempted to take moderate measures, highlighting risks such as lingering uncertainty about world trade, low inflation and a weakening of the global economy, while reaffirming that the United States was well on their fundamentals.
The central bank said in its statement that she still considered the labor market as "strong," adding that household spending "has risen." But he stressed that business spending is "low".
He added that the reduction in interest rates could contribute to the return of inflation to the target level of 2%, but these expectations are still unclear. The Fed said the most likely results were a sustainable growth in economic activity and a strong job market.
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