Federal Reserve Cuts Interest Rates ๐ฅfor Third Consecutive Time: ๐
1. The Federal Reserve announced another interest rate cut on Wednesday, reducing its key rate by 0.25%. This marks the third consecutive rate cut by the central bank, bringing the target range to ๐ข4.25% to 4.5%๐ข.
2. The decision was widely anticipated by investors and financial markets, as central bank policymakers continue to navigate economic challenges. The latest reduction brings rates back to levels last seen in December 2022, a time when the Fed was increasing rates to combat inflation.โ
3. While the rate cut was expected, investors are closely watching the Federal Reserve's future plans regarding monetary policy. The economic outlook and any signals on the direction of rate adjustments remain key areas of interest, as policymakers balance growth, inflation, and employment targets. ๐ฅ
4. This move reflects the Fedโs cautious approach to supporting economic stability while keeping inflation under control. Market participants will now focus on upcoming statements and data that could shape future policy decisions.โ
โฉ Powell Describes Rate Cut as a โCloser Call,โ but the Right Decision:๐๐
1. Federal Reserve Chair Jerome Powell acknowledged that Wednesdayโs decision to cut interest rates was a โcloser call,โ but ultimately the right move to support the central bankโs dual mandate. ๐ฅ
2. While todayโs decision was a closer call, we determined it was the appropriate step to advance our goals of maximum employment and price stability,โ Powell stated during a press conference. โ
3. He emphasized the need for balance, explaining that acting too slowly could weaken economic activity and hurt the labor market, while moving too quickly could undermine progress on reducing inflation. The central bank, he noted, aims to carefully navigate between these two risks. โ