JUST IN: Fed slices interest rates for second time this year.
The Federal Reserve cut its benchmark lending rate by one-quarter of a point on Wednesday, the second time this year it has reduced rates in the face of a weakening global economy.
The central bank's new interest rate is now 1.75 percent to 2 percent, according to a statement issued after a two-day monetary policy meeting by the Federal Open Market Committee, the voting arm of the Fed.— a move he believes will boost the economy and drive the stock market higher — Fed Chairman Jerome Powell has resisted such pressure on the central bank, an independent and apolitical body.
But market observers and economists are increasingly divided over whether the economy currently requires extra stimulus from the Fed. While China and the Eurozone have slashed their interest rate due to a demonstrable slowdown in economic growth, the U.S. economy remains robust, with solid yet slowing job gains, an unemployment rate that is the lowest in almost 50 years, and a modest uptick in wage growth.
"The economy has been defying gravity," said Steve Rick, chief economist at CUNA Mutual Group."We’ve been in the longest period of economic growth in history, so some turbulence is well-belated, and it’s understandable that the Fed will want to get in front of that.", investment uncertainty related to the ongoing trade skirmish with China, and stalled capital expenditure ahead of any conclusion to Brexit.
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