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US Fed cuts base rate again

UNITED STATES, WASHINGTON (OBSERVATORY) — The US Federal Reserve System (FRS) lowered the base interest rate for the second time this year on September 18. The decrease was 25 basis points from 2–2.25% to 1.75–2%, the US regulator said.

This was not a surprise for the markets, as most analysts predicted a decline.

In addition, the Fed also improved its forecast for US GDP growth. According to the regulator, this year it will not be 2.1%, but 2.2%. In 2021, growth is projected from 1.8 to 1.9%.

The level of expected inflation remained unchanged – 1.5%.

At the same time, the Fed expects US unemployment to rise to 3.7% instead of 3.6%, TASS notes .

On July 31, the US Federal Reserve lowered its base interest rate by 25 basis points – 2–2.25% per annum.

A few weeks ago, US President Donald Trump accused the Fed of mental weakness and called for lowering the interest rate to zero. In his opinion, if the regulator reduces the rate and does not curtail measures to stimulate the economy, American companies will overcome all competitors.

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