The Federal Reserve Announced That The Third Rate Cut This Year Will Be 25 Basis Points To 1.5-1.75%

Xinhua news agency, Washington, October 30, the US Federal Reserve Committee announced on 30 that it will cut the target rate of the federal funds rate by 25 basis points to 1.5% to 1.75%. This is the third time the Fed has cut interest rates this year, which is in line with market expectations.

After the end of the monetary policy meeting, the Fed issued a statement saying that since September, information shows that US economic activity has maintained moderate expansion and household expenditure growth has been strong, but fixed asset investment and exports remain weak. The overall inflation rate and the core inflation rate after excluding food and energy prices are still below the target of 2%.

The statement said that considering the impact of the global situation on the US economic outlook and moderate inflationary pressure, the Fed decided to cut interest rates, but the outlook for the US economy is still uncertain. While assessing the appropriate rate path, the Fed will continue to observe the impact of the future situation on the US economic outlook.

Federal Reserve Chairman Powell said at a news conference the same day, the Fed's monetary policy stance may be appropriate, but if the future economic data lead to substantial changes in the Fed's assessment of the US economic outlook, the Fed will take corresponding action.

The first forecast data released by the US Department of Commerce showed that the real GDP of the US in the third quarter of this year increased by 1.9% on an annual basis, down from the 3.1% growth rate in the first quarter and 2% in the second quarter.

In July 31st this year, the Federal Reserve announced the first rate cut since December 2008, reducing the target range of the federal funds rate by 25 basis points to 2% to 2.25%. In September 18th, the Fed announced again that it would cut the federal funds rate by 25 basis points to 1.75% to 2%.