U.S. Federal Reserve announces 0.25% cut in interest rates
WASHINGTON (apro) .- Faced with rising inflation caused by the effects of unilateral tariffs imposed by President Donald Trump, the Federal Reserve’s Open Market Committee announced a 0.25% cut in interbank lending rates.
The action taken by the US Federal Reserve Board of Governors is intended to reduce upward pressure on the price index for goods and products, which has the potential to trigger an economic recession caused by protectionist measures resulting from Trump’s trade war.
The adjustment to US monetary policy, taken by the Federal Reserve (Fed), does not stem from President Trump’s demands and pressure on the institution to reduce interest rates, but rather from the warning signs in the country’s economic reality.
The Fed’s macroeconomic review, which cut interest rates by 0.25%, is a kind of cooling agent for the inflationary bubble, which increased by 0.4% last month and stood at 2.9% in annualized terms.
The 0.25% reduction in interest rates is the first adjustment made by the Fed in nine months and the first during Trump’s second presidential term, bringing interest rates to 4% and 4.25% in annualized terms.
