United States Treasury Secretary Steven Mnuchin told lawmakers on Tuesday that he supported the Federal Reserve’s decision to cut rates in a bid to support the economy amid the coronavirus outbreak.
The Federal Reserve on Tuesday cut interest rates amid concern about the potential economic toll of the coronavirus outbreak. The Federal Open Market Committee (FOMC), which sets Fed interest rates, announced it would cut its baseline rate range by 0.5 percentage points to a 1 to 1.25 percent spread.
The global trade wars may not be over, but U.S. Federal Reserve officials on Thursday said the economy may have weathered the worst of it as risks begin to ease and businesses adjust to a new trade environment.
US central bankers last month dismissed the idea of taking interest rates into negative territory, something President Donald Trump has called for many times, according to meeting minutes released on Wednesday.
Federal Reserve chief Jerome Powell urged Congress on Wednesday to take action on the rising US debt and deficit to ensure the continued growth of the American economy. Called before the Joint Economic Committee to discuss the economic outlook, the central bank chief stressed that it was not his role to give policy advice, before he gave diplomatically-worded policy advice.
The US central bank has cut interest rates again, hoping to shield the economy from the impact of trade wars and a global slowdown. The Federal Reserve lowered the target for its benchmark rate by a quarter-point, to a range of 1.5% to 1.75%. The move was the third cut in four months.
Former IMF chief Christine Lagarde said President Donald Trump's trade offensive against China could slash global economic growth and she critiqued his Twitter habits in an interview with US television program 60 Minutes.
The Federal Reserve has announced a new program to boost liquidity in the US financial plumbing and allow the central bank to better manage interest rates, but without changing monetary policy.
Trade policy uncertainty driven by the Trump administration's escalating dispute with China means hundreds of billions of dollars in lost U.S. output and as much as US$850 billion lost globally through early next year, research published this week by the Federal Reserve suggests.
United States President Donald Trump on Friday accused the U.S. Federal Reserve Bank of inaction as the Euro slid in value against the dollar, something he said gave European countries a big trade advantage.