A Fed's rate cut to tackle US inflation, AMs say
On the 08.01.19 at 4:18PM
The US Federal Reserve cut interest rates by 25bps to a range of 2% to 2.25% for the first time since 2008, hinting that more cuts could take place around September this year. Asset managers assess that while this rate cut met expectations, the Fed’s decision focusses on tackling the US inflation, bringing it closer to its 2% target.
The decision, described as a “mid-cycle” adjustment by the Fed chairman Jerome Powell, was taken in the backdrop of inflation and increasing economic growth.