The Fed cut, as widely expected, lowering the target range for the federal funds rate 25 basis points to 2% to 2.25%. Policy makers based their decision on global developments and “muted” inflation pressures andto further reductions. Chairman Jerome Powell said the cut was designed to “insure against downside risks” rather than signal the start of a lengthy cycle of monetary policy easing.
“It’s not the beginning of a long series of rate cuts,” he said, adding: “I didn’t say it’s just one” cut. No matter how he couched it, it wasn’t going to be enough to mollify Donald Trump. “As usual, Powell let us down,” the U.S. president tweeted.after Chairman Jerome Powell dented hopes the Federal Reserve is poised to continue easing after delivering the first interest-rate cut in over a decade. All three major U.S. indexes fell more than 1%, with the S&P 500 dipping as much as 1.
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