Federal Reserve justifies the cuts in interest rates

Federal Reserve justifies the cuts in interest rates

The economy of the United States has expanded at a pace that was modest in the last six weeks of the year 2019 with there being uncertainty with regard to the trade policy of  the United States which was hurting the firms as per a survey that had been conducted by Fed as per their statement on Wednesday.

In a lot of the districts, the trade uncertainty and tariffs have continued weighing in on a few businesses as per the Fed in their reports which had been compiled from the evidences which were derived from anecdotes of business contacts in the country.

Donald Trump, the president of United States and Liu He, the Vice Premier of China signed this deal at the White House on this Wednesday post 18 months of conflicts between two of the largest economies in the world which has led to a slowdown in the global growth.

The Federal Reserve had cut the rates for three times in the previous year as it had reversed the course after three years of hike in the rates. The chair of Federal Reserve, Jerome Powell has characterized the cut in the rates as an insurance against the economic growth which is going to slow down and the tensions in trade for keeping the expansion going.

The policymakers in the Federal Reserve have since then made it plain that they are intending to keep the rates unchanged for the future as they cited a boost in the economy form the cuts last year and the ease in the tensions of the trade war between United States and China.

The policymakers though have warned that the deal isn’t going to eliminate the concerns of businesses.

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