The Federal Reserve officials have finally made a move. The officials have suggested that they will make quarter percentage cuts at their coming meeting. Furthermore, the officials have also said that they are of the opinion that in the coming a few months more cuts will be made.
The reason for such cuts, as per the Federal Reserve officials, is that they are scared that the global rate of growth is going to slow down, a pullback in inflation and uncertainty in trade policies.
However, at present, the officials are not in a mood to make larger or bolder cuts. Furthermore, those cuts appear to be of no importance as of now, as there is no imminent threat or expected downturn of events in the recent future.
Last week, Jerome Powell, the Fed Chairman, set the stage for rate-cutting. According to the officials, this comes with the fact that the shortfall in inflation as per the organization and the issue of global growth issues. The recent developments have strengthened the decisions.
What’s more, during the meeting, the officials will discuss how to signal their plans beyond the month of July. We have all been expecting cuts in the market increased, after the speech given by New York Fed President, John Williams. His speech expounded the need of a change and how for the past twenty years, an aggressive tactic has been followed when the economy is weakening.
Although Prez Donald Trump has been repeatedly cutting away the cuts, he finally Tweeted about the speech. However, only time will tell what is to happen next. Some experts say that cutting rates is a good way to go. However, others believe that there is no need for an aggressive move at this point.