On September 18-19, 2019, the Federal Reserve announced the second reduction of interest rates in the year due to concerns over the global economy and muted U.S. inflation. According to the minutes of the policy meeting, members of the Federal Open Market Committee saw a rate cut as a way to adjust policy in the face of greater economic uncertainties. “Members judged that a modest loosening of monetary policy at this meeting was appropriate,” the minutes read.
However, it’s important to note that not all members agreed with the decision to lower interest rates. Two voted against the move, arguing that the economy remained reasonably strong and there was no need for cheaper money.
Post in the minutes, many Fed officials said their concerns about the economy had increased, due to both the global slowdown and President Trump’s ongoing trade war with China. They expressed concern about high levels of corporate debt, a possible bubble in technology stocks, and sluggish inflation. Therefore, it is expected that the Fed will likely continue to monitor these issues closely.
The September meeting’s minutes also indicated that most members believe that more interest rate cuts are likely needed in the future, but the timing and size of these adjustments will depend on the evolution of the outlook for both inflation and economic growth.
Please note that this information may change based on economic conditions and other factors, so it’s important to stay updated with current news.
