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US Federal Reserve Further Cuts Interest Rates, Third Time This Year

The last time that the Federal Reserve reduced interest rates, the move was preceded by President Donald Trump criticising the its actions, demanding that it lower the rates to closer to zero. POTUS argued that the Fed is doing more harm to the American economy than China.

The US Federal Reserve has decided to further lower interest rates to the 1.5-1.75% range after previously cutting it to the 1.75-2% range in mid-September. According to the Fed's statement, the decision will allow to "sustain the expansion" of the country's economy.

"The Committee will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate", the official statement said.

The Federal Reserve started cutting rates back in July – for the first time in a decade. At the time, the rate was set at the 2%-2.25% range, but US President Donald Trump called the reduction insufficient, arguing that high rates were damaging the American economy more than China's alleged abuse of trade practices or currency manipulations.

After almost two months of criticism, the Fed reduced the rates by a notch to 1.75-2%, but some economists have suggested that another reduction could be on the way. Following the second reduction, which took place in September, Federal Reserve Chairman Jerome Powell stated that the US economy was performing well, with strong consumer spending, low unemployment, and low inflation.

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