Mexican Media Brands
Fed Cuts Interest Rates Again
As expected, the Federal Reserve lowered its benchmark interest rate by one-quarter percentage point to a range of 1.75%-2%.
#economics
Share
As expected, the Federal Reserve lowered its benchmark interest rate by one-quarter percentage point to a range of 1.75%-2%.
The reduction is the central bank’s second in two months. Chairman Jerome Powell says the cut is intended to maintain a strong American economy in the face of “notable developments” that could sap momentum.
Powell notes that trade wars are reducing business investment, an element he says the Fed “really can’t address.”
The Fed was internally split about today’s reduction. Seven board members felt that the cut was justified by weakening global markets and a too-low inflation rate. One thought a half-point reduction would be more appropriate. Two others argued that strong consumer spending shows that the American economy doesn’t need stimulating.
The bank predicts inflation won’t reach its target level of 2% until 2021 and says unemployment is likely to average 3.7% this year and next.
RELATED CONTENT
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.