The U.S. central bank, the Federal Reserve, took a significant step on Wednesday by lowering its interest rate by half a percentage point, equivalent to 50 basis points. This move comes in response to indicators showing that inflation is starting to moderate and the labor market is experiencing some weakening.
In a recent interview with CGTN's He Jingyi, former Federal Reserve Vice Chairman Donald Kohn emphasized the importance of initiating and maintaining a path of rate cuts. \"The important point is to start and continue cutting rates because the markets will anticipate,\" Kohn stated. His insights suggest a strategic approach to managing economic indicators and ensuring market stability.
This decision by the Fed reflects a balancing act between curbing inflation and supporting economic growth. As young professionals and entrepreneurs closely watch these developments, the implications of sustained rate cuts could influence investment strategies, startup funding, and broader economic trends across global markets.
Reference(s):
Former Fed vice chair: Important to start and keep cutting rates
cgtn.com
