FED cuts interest rates for first time since 2008 crisis

(VOVWORLD) - The Federal Reserve (FED) cut interest rates on Wednesday for the first time since the 2008 global economic recession as it tried to protect the US economy from mounting global risks. FED imposed a 0.25 percentage point cut that lowered its target rate to a range of 2 percent to 2.25 percent.

“The outlook for the US economy remains favorable and this action is designed to support that outlook”, said the FED Chair, Jerome Powell.

“It is intended to insure against downside risks from weak global growth and trade policy uncertainty, to help offset the effects these factors are currently having on the economy. All of these objectives will support achievement of our overarching goal, to sustain the expansion with a strong job market and inflation close to our objective for the benefit of the American people”, Powell said. 

FED said it is likely to further cut the interest rates to empower the US economy against downside risks of the global economic slowdown.