No surprise that the Federal Reserve moved to trim interest rates by a quarter point today, following earlier reports that the world economy is sluggish and could drag the U.S. down with it.
To forestall that, the Fed moved to make business financing a bit easier, reducing its core interest rate to 2 percent from 2 1/4 percent.
Last week, the Commerce Department noted that the economic growth rate fell to 2.1 percent in the second quarter, down from its 3.1 percent rate as the year began. Earlier, the International Monetary Fund reported that worldwide growth may be slowing.
And despite continuing growth in America, which has had its longest upside stretch ever, the signals from around the world suggest that this could soon end. So to prevent that and to encourage continuing economic health, the Fed trimmed its core interest rate.
Will it work? Watch how things go over the rest of the year.
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