Sihai network

The Fed's interest rate cut of 25 basis points will end in August, and the "table contraction" will

On July 31 local time, the Federal Reserve announced that it would cut its benchmark interest rate target range by 25 basis points to 2.00% - 2.25%, the first rate cut in 10 years. In addition, the Federal Reserve will end its' table contraction 'in August, two months earlier than expected.

Fed chairman Powell said at a news conference that the interest rate cut should be regarded as a medium-term adjustment of monetary policy, which will help the economic performance meet the wishes of the Fed. However, the current decision to cut interest rates does not mean the beginning of a long interest rate cut cycle, but implies that the Fed may still cut interest rates again. He said that today's decision to cut interest rates has been brewing for some time and does not necessarily herald a long cycle of interest rate cuts. "What we see now is that it is appropriate to adjust the policy to a more relaxed policy over time," he said. "This is not a long-term reduction cycle." Powell said that the overall evolution of the Fed's policy outlook this year, from hawks to doves, is helpful to the economy, and the interest rate cut "will work" to help economic growth. He added that interest rate cuts' seem to have worked through confidence channels' and reducing short-term borrowing costs.

As for the economic outlook, Powell said that although the Fed is worried about weak global economic growth, uncertainty in trade policy and inflationary pressure, the U.S. economic outlook remains good. However, he pointed out that the uncertainty caused by weak global economic growth and trade tensions has an impact on the U.S. economy. The main problems facing the United States are downside risks and declining inflation. The Federal Reserve is paying close attention to the impact of weak global economic growth.

In response to President Trump's previous pressure on the fed to cut interest rates, Powell said that the Fed did not cut interest rates because of President Trump's pressure. He said that the Fed's monetary policy was not to prove independence, but to achieve the goals of maximizing employment and price stability.

Just after the Federal Reserve announced the interest rate cut, US stocks fell together. The three major stock indexes fell by more than 1%. The Dow once fell more than 200 points and fell below the 27000 mark. Although the Fed is expected to cut interest rates this time, the decision to cut interest rates is still controversial. Robert middot, Professor of economics at the University of Southern California; De kler told the people's Daily that at present, the U.S. economy is strong and there is no need to cut interest rates. The Fed's interest rate cut will only stimulate the stock market and property market to rise further.