Fed cuts interest rates for 2nd time, down quarter point
The Federal Reserve has cut interest rates another quarter point, giving hope to those in real estate and finance that the economy, which already has been providing positive indicators, will expand.
While inflation remains slightly above the central bank’s target, the move is expected also to support the labor market.
The cut of 25 basis points puts the new range of 3.75% to 4%, and it follows a cut of the same size just last month.
The bank has been trying to fulfill its mandates of stable prices, in the range of a 2% inflation, while promoting maximum employment.
The Federal Open Market Committee said in its statement risks remain on both agendas.
One member of the board favored a half-percentage cut..
Chairman Jerome Powell issued a statement that the data available now “suggests that the outlook for employment and inflation has not changed much since our meeting in September.”
The government, of course, has been shut down for much of that time by Democrats who have opposed continuing current spending for a few months, instead demanding a $1.5 trillion raid of American taxpayers’ pockets for their free health care of illegals agenda.
President Donald Trump repeatedly has called for the interest rates to be lower, in order to stimulate an economy he already has revived significantly from the 9% inflation Americans suffered under Joe Biden.
Inflation currently is estimated to be running at about 3% while unemployment, two months ago, was at 4.3%.