US Fed cuts interest rate by 25-bps, signals a pause on further rate-cut


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US Fed cuts interest rate by 25-bps, signals a pause on further rate-cut

On Wednesday, the 30th of October 2019, the US Federal Reserve slashed interest rate by 25-basis point for the third time this year in a bid to sustain a US growth which has been experiencing a record-long streak of expansion entering into its straight 122nd month of gain in a row and to weather a wary impact of a global-scale slowdown in several major economies across the world, while the US Fed had also signalled a plausible pause at its series of rate-cuts unless there had been further downward spirals in the US economy.

In point of fact, adding that the US economy had been harbouring over an economic safe-zone and could be insulated from a global-scale slowdown, Fed Chair Powell said in a news conference late on Wednesday (October 30th) following release of US Central Bank’s announcement to cut its overnight borrowing cost by 25-basis percentage point to a range of 1.50 per cent to 1.75 per cent, “We took this step to help keep the economy strong in the face of global developments and to provide some insurance against ongoing risks.

We see the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook. ” Nonetheless, followed by Fed decision to trim interest rate for the third time this year, multiple analysts and economists were quoted saying that a borrowing cost of 1.5 per cent to 1.75 per cent alongside a signal to halt an unofficial rate-cut cycle, would likely to ratchet up heats between Fed and US President Donald Trump, who had repeatedly been asking for a deeper rate cut to boost a slowing US economic growth that had pitted to an annualized rate of 1.9 per cent in Q3, 2019, well-below a benchmark 3 per cent level that Trump had pledged during taking over White House back in 2016.