Trump didnt comment on the Feds third rate cut this year

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 Trump didnt comment on the Feds third rate cut this year


Oct. 31 (Xinhua) -- on the afternoon of Oct. 30 local time, the Federal Reserve announced to cut interest rates by 25 basis points to 1.50% - 1.75%. This is the third time in the year that the Federal Reserve has cut interest rates, only one and a half months after the last one. As soon as the news came out, the three major U.S. stock indexes ended higher, while the U.S. dollar index turned lower after rising in the short term. It is worth mentioning that President trump did not make the first comment this time.

According to the Wall Street Journal of the United States, at 2 p.m. local time on the 30th, the Federal Reserve issued a resolution on October interest rate. Based on the policy objectives of the Federal Reserve, the decision was made to cut the interest rate by 25 basis points to 1.50% - 1.75% in order to ensure the maximum full employment and the stable inflation rate at 2%.

Federal Reserve Chairman Powell said he firmly believed that the rate cut was the right move, and the rate cut was approved by an 8-2 vote.

According to the statement released by the Federal Reserve, since September this year, the U.S. labor market has remained strong and economic activity has been growing at a moderate rate. In recent months, the average new employment is still stable, and the unemployment rate is still very low. But household spending has been growing strongly, and business fixed investment and exports remain weak. The survey shows little change in long-term inflation expectations.

Source: Wall Street Journal

British media said that Powell described this years rate cut as cyclical adjustment, designed to continue economic expansion, rather than against the economic downturn. The rate cut, as well as the signal to suspend the rate cut in December, is a judgment made by the federal reserve after carefully weighing the actual measurement data with concerns about political uncertainty and the possible impact of the global economic slowdown on US consumers, because the US central bank wants to ensure that there is still room for rate cuts in a downturn.

At the meeting of the Federal Reserve on the 30th, the initial value of the third quarter GDP growth data released by the US Department of Commerce showed that business investment shrank by 3% at an annual rate, the worst data since the US manufacturing recession in 2015 and 2016. Household spending in the United States slowed, but it continued to grow by 2.9%.

After the Fed cut interest rates for the first time on July 31, trump said on social platforms: as usual, Powell let us down, but at least he ended the quantitative tightening policy, which should not have started - there was no inflation. Anyway, were winning, but Im sure I wont get much help from the Fed!

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