Federal Reserve chairman Jerome Powell announced an interest rate cut of 0.25% Wednesday

Federal Reserve chairman Jerome Powell announced an interest rate cut of 0.25% Wednesday, confirming analysts’ expectations of a cut amid softening inflation, a strong consumer economy and an uncertain international trade outlook.

Fed Cuts Interest Rates For 1st Time Since 2008

✅ According to a Federal Reserve press release, “This action supports the Committee’s view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain.”

✅ The move should mean the cost of borrowing for mortgages, auto loans and credit cards will decrease and encourage consumers to spend.

✅ President Trump has repeatedly demanded a rate cut—as recently as Monday— and also complained about Powell’s performance. Trump has considered firing Powell, a risky move that could cause market instability.

✅ The most recent interest rate hike occurred in December 2018, with four total implemented that year.

✅ Powell hinted on July 10 a rate cut would happen due to “uncertainties around trade tensions and concerns about the strength of the global economy,” which helped spur the S&P 500 to a record high.

✅ It was suggested before Wednesday’s announcement that a rate cut would be enacted by the Fed to appease Trump, instead of doing what was best for the economy.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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