The Federal Reserve has Lowered Interest Rates in the United States by a Quarter of a percentage point on Wednesday. This is the result of one of the most politically charged interest rate meetings of the fed in recent years.
US President Donald Trump Has Been Tryping to Pressure the Fed in recent months to Lower Borrowing Costs Quickly. An interest rate cut stimulates the economy. But The Central Bank’s Board is reluctant to do so, as it can drive up prices (Further).
This is the first time this year that the us umbrella organization of central banks has lowered borrowing costs. Economists and Financial Markets Were Already Counting on a Cut in Interest Rates to a Level Between 4 and 4.25 percent. This step follows signals that the US Labor Market is Weavening. In Addition to Controlling Inflation, The Fed Has The Task of Keeping Employment As High As Possible.
The New Interest Rate Decision Comes at A Time of Increasing Conerns About The Independence of the Fed. For Example, The Government Has Tried to Fire Fed Governor Lisa Cook. The Government Accused Her of MortGage Fraud, But An American Judge (Temporarily) Put a Stop to Her Dismissal.
The Fed Board Has Seven Members and a Chairman: Jerome Powell. Trump has also Previously Threated to Fire Powell because the fed refused to Lower Interest Rates for a long time. Powell’s term expires in May Next Year. Trump has already said that he not travel point him then.