On Wednesday local time, the US Federal Reserve decided to lower the federal funds rate by 25 basis points, setting a new target range of 3.5–3.75%. This marks the Fed's third rate cut this year.
Speaking at a press conference, Fed Chair Jerome Powell noted that the policy rate has fallen by 75 basis points since September and 175 basis points since last September. "The fed funds rate is now within a broad range of estimates of its neutral value, and we are well positioned to wait to see how the economy evolves," he said.
Powell attributed earlier tariff policies for fueling excessive inflation and explained that this year's cuts aim to stabilize the labor market and steer inflation toward the 2 percent target after tariff impacts subside.
Meanwhile, US President Donald Trump argued the cut should have been "at least doubled," calling Powell "a stiff" who approved a "rather small" reduction despite his long-standing calls for more aggressive rate cuts to boost growth.
Reference(s):
cgtn.com
