US Federal Reserve Cuts Key Interest Rate by 0.25 Percentage Points

TaiwanPlus News

The US Federal Reserve has reduced its benchmark interest rate by 0.25 percentage points, lowering the main lending rate to between 4 and 4.25 percent. It is the first cut since December, as officials balance inflation risks against slowing job growth. Fed Chair Jerome Powell said the decision reflects a shift in economic risks, and analysts expect further reductions in October and December. Taiwan’s stock market surged following the move, with the central bank set to hold its own policy meeting on Thursday.

Transcript

00:00The U.S. Federal Reserve has cut interest rates by 0.25 percentage points, the first reduction since last December.

00:08In support of our goals and in light of the shift in the balance of risks,

00:12today the Federal Open Market Committee decided to lower our policy interest rate by a quarter percentage point.

00:19The cut brings the main lending rate down to between 4 and 4.25 percent.

00:24Official signal they'll continue lowering borrowing costs through the rest of this year.

00:28Analysts say the challenge has been finding a balance.

00:31Lowering rates too quickly could drive prices up, but keeping them to high risks driving unemployment.

00:38It is a risk management cut, but at the same time, because the Fed is likely to be cutting rates again in October and December,

00:47it's an effort to put a floor underneath a cooling job market and thereby reduce the risk of recession.

00:59Taiwan's stock market surged after the Fed decision.

01:02The central bank is scheduled to hold a meeting on Thursday to determine its latest monetary policy.

01:07Thank you, to the north.

01:12Thank you for having me on Thursday with the Fair facility.

01:14We will walk right out to Wednesday.

01:14We will move right back to Wednesday.

01:16Thank you for waiting.

01:17We will see.

01:18We will see.

01:20We will see.

01:22Welcome.

01:22A couple of notes,

01:23We will see.

01:24We will see.

01:25We will see.

01:26Welcome.

01:27Today.

01:27Welcome.

01:28Welcome.

01:28To come to Ministry.

01:29Answers.

01:30Welcome.

01:30To the Daytona and Urbanıyoruz.

01:32to prepare.

01:34Welcome.

01:34This is great.

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