Fed cuts interest rates for the first time in 10 years

The US central bank (Fed) has cut official interest rates in the country for the first time since 2008. As a result, the main interest rate falls back to a range of 2% to 2,25%. 

The main reason for this rate cut, according to the Federal Reserve, is related to developments in the global economy; especially outside the United States, economic growth is slowing. On Wednesday 31 July, Eurostat announced that economic growth in the eurozone was 0,2%.

The economy in the United States is still growing and the labor market is doing well, but growth is slowing. Inflation is just below the Fed's target. The central bank also announces that it will stop reducing its balance sheet in August. In total, 8 out of 10 members voted in favor of a reduction.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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