Federal Reserve Cuts Interest Rates by Another Quarter Point
Posted on 09/18/2019
Jerome H. Powell, Chairman of the Federal Reserve, revealed the central bank cut interest rates by a quarter of a percentage point. The Federal Open Market Committee (FOMC) disclosed that it would take down its benchmark overnight lending rate to a target range of 1.75% to 2%. This second rate cut comes after the FOMC went ahead with its first cut since the global financial crisis. Furthermore, Chairman Powell hinted the central bank was prepared to move aggressively if the United States economy displayed additional signs of weakening.
Chairman Powell also addressed the media on his views of negative interest rates saying, “I do not think we’d be looking at using negative rates, I just don’t think those will be at the top of our list.”
Powell also ruled that there is a possibility the Federal Reserve may have to resume balance sheet growth.
Keywords: Federal Reserve System.
