The historical signal: The US Central Bank has lowered for the first time since the financial crisis of 2007/2008, the Leitzinse. The Fed said on Wednesday evening Swiss time in Washington. The easing comes as no surprise. Trade conflicts and slower growth in the United States to make the Central Bank Worried. Questionable the extent of the reduction in interest rates remained until last but.
in Addition, the Bank will finish tapering its bond program in August, two months earlier than planned. The decision of the Central Bank, the stock exchange and the US is likely to give economy a new impetus.
Fed has four Times interest rates
It increases is the first rate cut by the Fed since December 2008. In view of the slowdown in the global economy and simmering trade conflicts had emerged of the step. In the past year, the Fed had raised four Times the interest.
The order of the Central Bank-initiated turnaround in interest rates marked a turning point of monetary policy: In the Wake of the devastating global financial crisis of 2008/2009, the Central Bank had cut interest rates aggressively to stabilize the economy. In 2015, she began to increase the key interest rate again gradually.
Recently, the Central Bank was worried, however, because of the US President Donald Trump-driven trade conflicts and the worldwide deterioration in the economic Outlook of the US economy. According to analysts, the Fed wanted to catch up with your step is a threat of weakening of the for the past ten years, growth of the US economy.
Central Bank comes President Trump contrary
With the reduction in interest rates by the independent Central Bank was also their most prominent critic, President of the Trump. He talks for months, publicly scathing criticism of the course of the Central Bank and calls for lower interest rates.
He had called the Fed is about as “totally clueless” or as a “hartnäckigstes Problem” of the US economy. Yet on Tuesday he had asked the Central Bank in view of the anticipated slight reduction of the key rate to a bigger incision.
The U.S. unemployment rate in June was only 3.7 percent. The growth of the economy is still robust, is slowing but. Inflation is, however, below the target of the Central Bank’s two percent. Some analysts had argued, therefore, that there is a need for a larger interest rate reduction of 0.5 percent to Inflation and economic fuel. (SDA/pma)