The Federal Reserve Announced The Second Cut In Interest Rates This Year By 25 Basis Points.

Xinhua news agency, Washington, September, 18, the US Federal Reserve announced on 18 that it will cut the target rate of the federal funds rate by 25 basis points to 1.75% to 2%. This is the second time the Fed has cut interest rates this year, which is in line with market expectations.

The Federal Reserve issued a statement after the end of the monetary policy meeting that day, saying that since July, the US economic activity has continued to grow moderately, household expenditure has grown strongly, the employment market has been growing steadily, and the unemployment rate has remained low. However, investment and export of fixed assets have weakened. In the past 12 months, the overall inflation rate and core inflation rate after excluding food and energy prices were all lower than 2%.

The statement said that considering the impact of the global situation on the US economic outlook and moderate inflationary pressure, the Fed decided to cut interest rates, but the uncertainty faced by the US economy still existed. For the future federal funds rate trend, the Fed will continue to pay attention to the US economic situation and take appropriate actions to maintain the expansion of the US economy.

Federal Reserve Chairman Powell said at a news conference the same day, the Fed's interest rate cuts were mainly aimed at coping with the risks posed by trade policy uncertainty, slowing global economic growth and low inflationary pressures to maintain the expansion of the US economy.

The quarterly economic forecast released by the Fed on the same day shows that the US economy will grow by 2.2% and 2% respectively in the next two years, and the unemployment rate will remain at 3.7%.

In July 31st this year, the Federal Reserve announced the first rate cut since December 2008, reducing the target range of the federal funds rate by 25 basis points to 2% to 2.25%. The industry expects that the Federal Reserve will still cut interest rates once this year.