Home / Knowledge / News / Textiles / US Fed cuts interest rate by 25 bps to 1.75-2% range

US Fed cuts interest rate by 25 bps to 1.75-2% range

19
Sep '19
Pic: Shutterstock
Pic: Shutterstock
The US Federal Reserve on 18 September cut interest rates by a quarter of a percentage point for the second time this year. The move is aimed at sustaining a decade-long economic expansion. The central bank also widened the gap between the interest it pays banks on excess reserves and the top of its policy rate range to tackle problems in money markets.

In lowering the benchmark overnight lending rate to a range of 1.75 per cent to 2 per cent, the Fed's policy-setting committee nodded to ongoing global risks and ‘weakened’ business investment and exports.

The Fed was cutting rates ‘in light of the implications of global developments for the economic outlook as well as muted inflation pressures’, it said in its policy statement.

With continued growth and strong hiring ‘the most likely outcomes’," the Fed cited ‘uncertainties’ about the outlook and pledged to ‘act as appropriate’ to sustain the expansion, according to global newswires.

There was little change in policymakers' projections for the economy, with growth seen at a slightly higher 2.2 per cent this year and the unemployment rate to be 3.7 per cent through 2020. Inflation is projected to be 1.5 per cent for the year, below the Fed's 2 per cent target, before rising to 1.9 per cent next year.

The rate cut fell short of the more aggressive reduction in borrowing costs that President Donald Trump had demanded from Fed officials, whom he has insulted as ‘boneheads’ who have put the economic recovery in jeopardy.

The Fed also cut rates in July, the first such move since 2008. Fed officials said the rate cuts are justified largely because of risks raised by Trump's trade war with China, a global economic slowdown and other overseas developments. (DS)

Fibre2Fashion News Desk – India


Interviews View All

Anvita Mehra, Confidential Couture

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Nitin Bhatia, Trend Arrest

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Textile industry, Head honchos

Textile industry
Head honchos

Quality should be the #1 priority

Carmen Silla,

Carmen Silla

Leading the transformation of the textiles industry with disruptive...

Christiane Thies,

Christiane Thies

Founded in 1892, Thies has concentrated on the fabrication of high-quality ...

Harmeet Singh,

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search