Federal Reserve cuts interest rate, signals two more cuts this year

“No risk no longer, Pow Powell said. “It’s not incredibly open to what to do.”

The FED faces threats to both a challenging economic environment and from daily politics to traditional independence. At the same time, recruitment has weakened, inflation is stubbornly rising. According to the Consumer Price Index, 2.7 percent in July and the 2 percent target of the Fed increased by 2.9 percent in August a year ago.

It is unusual to have weaker recruitment and high inflation, because a typically slowing economy causes consumers to withdraw their expenditure, cooling price increases. Powell, last month, even if tariffs increase even more, stagnant growth can keep inflation under control.

Separately, Trump’s Cook firing attempt first tried to remove a FED Governor’s Central Bank on its 112 -year -old 112 -year -old year, and is seen as an unprecedented attack on the independence of the Fed by many legal scholars. He accused Cook of mortgage fraud, but the accusation came because Trump did not reduce rates much faster and upright in the context of Trump’s comprehensive criticisms for Powell and Fed.

On Monday, the Court of Appeal approved an earlier decision that fire was violating the necessary process rights of Cook. A sub -court had previously decided that Trump had not given enough justification to remove the cook. In addition, on Monday, the Senate voted to approve Miran’s nomination and swore on Tuesday morning.

On Tuesday, Trump added that Fed officials have to “make their own choices” but “should listen to smart people like me”. Trump said the FED should reduce the rates of three full points.

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When asked what the FED will not work independently of political pressure, Powell said, “I don’t believe we’re going to come to that place. We do our job as usual.” He said.

In its estimates on economy and monetary policy, most FED officials estimate the key rate of the central bank between 3.5 and 3.75 percent by the end of the year. However, Miran estimated a rate of 2.75 percent to 3.0 percent.

The Fed’s movement to reduce rates brings it to a different point from many other central banks abroad. Last week, the European Central Bank left without changing the comparison rate as inflation has cooled to a great extent and the economy has ever been damaged by the US tariffs. On Friday, the UK Bank’s rate is expected to remain higher than the US as 3.8 percent.

AP

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