world economy: US interest rates Jerome Powell, the Fed chairman, said weak global growth and the US-China trade war had been disruptive for the world economy and had an impact on growth in America, despite the US labour market remaining strong with the lowest unemployment rate since the late 1960s, according to The Guardian. We see those as threats to what is clearly a favourable outlook. The US central bank cut its key benchmark interest rate by a quarter of a percentage point, to a range of 2%-2.25%, in the first reduction in borrowing costs since immediately after the financial crisis a decade ago. And we see this action as designed to support them and keep that outlook favourable, he said of the interest rate cut. Stocks fell on Wall Street straight after the decision as investors warned the 0.25% cut might not be enough to deliver greater stimulus for US growth. Donald Trump, who had called for a more aggressive cut in interest rates, issued a sharp rebuke to the Fed chairman when he said on Twitter As usual, Powell let us down.
(news.financializer.com). As
reported in the news.
Tagged under world economy, labour market topics.