The US Federal Reserve cut its benchmark interest rate by half a percentage point, to a range of 4.75-5.00%, for the first time in four years.
The Central Bank Council issued a statement explaining that “the basic interest rate was reduced to 4.75-5.00 percent for the first time since 2020.”
The US central bank said it was “more confident” that inflation would decline. The decision was not unanimous at this last Fed meeting before the US elections on November 5, with Governor Michelle Bowman supporting a quarter-point rate cut.
Expectations indicate that there will likely be further cuts before the end of this year.
The US Federal Reserve’s decision comes before the US presidential elections, as election candidate Donald Trump considers it to be in the interests of Democratic candidate Kamala Harris, who seeks to benefit from the economic achievements of current President Joe Biden.
It is noteworthy that the last time the Federal Reserve cut interest rates was in 2020 to support the economy in light of the Covid-19 pandemic, and the interest rate later peaked at 5.25-5.50 percent due to high inflation.
In the context, “oil prices rose slightly in today’s trading, Thursday, and US crude futures “West Texas Intermediate” rose by 0.45% to $71.23 per barrel, while Brent crude futures rose by 0.67% to $74.14 per barrel,” according to Bloomberg.
In yesterday’s trading, black gold prices fell for the first time in several sessions, and Brent crude closed trading at $73.65 per barrel, while global crude ended trading at $69.73 per barrel.
Last updated: September 19, 2024 – 10:10
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2024-09-19 18:54:31