Fed decides on lowering interest rate
The US Federal Reserve, the country's central bank, has made a significant move to support the economy by lowering interest rates. In a statement, the Fed announced a 25 basis point reduction, marking the first rate cut of the year.
The decision was made by a majority of the Fed's members, including Stephen Miran, a newly appointed board member and economic advisor to President Donald Trump. While Miran advocated for a larger cut of half a percentage point, the quarter-point reduction was implemented. The exact names of other individual voters supporting the cut were not specified.
The new target range for interest rates is now between 4.00% and 4.25%. The statement also indicated expectations of a further 50 basis point reduction in interest rates by the end of the year. Additionally, the Fed suggested the possibility of two additional rate cuts before the end of the year and an additional 25 basis point cut in interest rates in each of the next two years.
The move comes in response to economic conditions, particularly a slowing labor market. The US economy faces economic risks, according to the Federal Reserve, and this decision is aimed at boosting growth and maintaining stability. The Fed's action is designed to provide the US economy with the necessary support it needs to navigate through these challenging times.
This decision by the US Federal Reserve is a clear signal that they are prepared to take action to support the economy. It is a proactive step towards maintaining the health and stability of the US economy, ensuring continued growth and prosperity for all Americans.
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