(Breaking News) U.S. Federal Reserve cuts interest rates for the second time in a row… 0.25%p ‘small cut’ implemented |

The U.S. Federal Reserve (Fed) lowered its base interest rate by 0.25%p on the 7th (local time). This is two consecutive cuts following the big cut (a 0.5% point cut in the base interest rate) last September.

According to CNBC, the Federal Reserve held a regular meeting of the Federal Open Market Committee (FOMC) on this day and lowered the base interest rate from 4.75 to 5.00% to 4.50 to 4.75%.

This is a continuous interest rate cut following the big cut last September. In particular, this is the first time since 2020 that monetary policy has been eased twice in a row.

In particular, this interest rate cut is a move that market investors have been anticipating.

Investors have been predicting that the Federal Reserve will implement a gradual interest rate cut of 25bp (1bp = 0.01%p) amid confidence that U.S. economic indicators are slowing and inflation is heading steadily toward the target of 2%.

After previously raising rates 10 times in a row starting in March 2022, the Federal Reserve has frozen interest rates at the 5.25-5.50% level for eight consecutive times since September of last year.

Since then, the Fed, which has been trying to lower inflation to the Fed’s target of 2% through a high interest rate policy, began an aggressive interest rate cut last September when the issue of slowing employment arose.

At the time, Federal Reserve Chairman Jerome Powell announced that the big cut was carried out to achieve the dual goals of ‘maximum employment’ and ‘stable prices’.

(Seoul = Newsis)