U.S. President Donald Trump has requested a reduction in interest rates since his second term of the president.
The US Federal Reserve system for the first time in nine months reduced the rate key of 25 main points, setting it to 4.0-4.25%. Such a decision, related to the weakening of the labor market, caused positive movements in the stock markets. It was reported on September 17 by DW.
According to the publication, the analysts predict this step, given the current state of the American economy. A reduction in rate is accompanied by a revision of economic forecasts – GDP growth is expected by 1.6%instead of 1.4%, while inflation rate remains unchanged at 3%. The Fed explains the decline of bets as a way to ensure a balance between the gradual risk of unemployment growth and the stability of prices. The cost of business loans and consumers will contribute to economic activation and creating new jobs.
US president Donald Trump has long called for such changes, especially after the start of his second period, which created further pressure on the Fed. Trump’s early statements, including threats to delete the chapter of Jerome Powell’s reserve system and a scandal with Lisa Cook, influenced stock markets. However, his decision to remove Cook was canceled by the court.
Remember that the National Bank of Ukraine has decided to leave the discount rate without changes to the level of 15.5%
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Source: korrespondent
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