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US Federal Reserve Reduces Rates by 0.25%, Revises Economic Growth Outlook
In a surprise move, the United States Federal Reserve (Fed) has decided to reduce interest rates by another 0.25%. This decision comes amidst ongoing economic uncertainty and an inflation rate that remains above target.
According to sources close to the Fed, the decision is part of an effort to balance economic growth with inflation control. The new measures will provide a stimulus boost to the economy, while also being cautious not to further fuel inflationary pressures.
In a statement issued by the Fed, it was emphasized that monetary policy decisions are made on a data-driven basis. This move aims to support the US economy, which has seen sluggish growth over the past few years. The central bank acknowledged that there are concerns about the potential impact of these rate cuts on the housing market and inflationary pressures.
As part of the same announcement, the Fed also revised its economic growth outlook. According to the revised forecast, the country is expected to see a significant slowdown in GDP growth this year. This development comes as a shock to many analysts who were expecting a modest pick-up in the economy’s performance.
However, the central bank has warned that it will not hesitate to adjust policy if inflation risks rise above its target range of 2%. The Fed reiterated its commitment to using monetary policy to ensure maximum employment and price stability while also promoting long-term economic growth.
The reduced interest rate is expected to have a ripple effect on the housing market, with many experts already warning about a potential impact on home affordability. High mortgage rates are likely to continue challenging housing demand in the near future.
In response to these developments, many crypto enthusiasts were seen scrambling to buy Bitcoin and other top cryptos in anticipation of a further rate cut by the Fed.
Source: cryptonewsland.com
