For the first time because of the start of the recession more than a decade in the past, the Federal ReserveOpens a New Window. Is poised to cut rates of interest in hopes of protecting the 11-year financial expansion from growing global uncertainties.
The central bank is anticipated to announce its decision on rates of interest on Wednesday at 2 p.m. ET.
The gradual decrease within the benchmark federal funds rate — economists anticipate the U.S. central bank to lower it by a modest quarter of a percentage point — will finish a period of monetary tightening by policymakers, who’ve voted nine times since 2015 to lift rates of interest, as recently as December.
“The subsequent question is going to be will there be any additional cuts after this?” stated Josh Wright, the chief economist at iCIMS and a former Fed staffer. “I feel these numbers actually will make it very simple to say one and done. We are ok with it now, and now we have to let this one cut seep through, so you’re going to let that feed through, barring any major developments.”
The expected cut will likely placate President Trump, who regularly belittles the Fed, and its chairman, Jerome Powell, for elevating rates of interest too high, too quickly. On Tuesday, ahead of the Federal Open Market Committee’s two-day meeting, Trump reiterated his criticisms, calling on the Fed to make a “large” rate cut.