Federal Reserve Chairman Jerome Powell Says Economy Remains Strong, Announces Interest Rate Cut

Federal Reserve Chairman Jerome Powell announced today there will be an interest rate cut as they “lower the target range for the federal funds rate” a quarter of a percentage to 2 to 2-1/4 percent. The Fed Chairman said “that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid,… and the unemployment rate has remained low.” The interest rate cut is aimed to support “sustained expansion of economic activity, strong labor market conditions, and [a curbed] inflation.” Despite the continued strong performance of the economy, Chairman Powell warned of “risks from weak global growth and trade policy uncertainty” and possible regression due to the fact “manufacturing output has declined for two consecutive quarters, and business fixed investment fell in the second quarter.”

1. https://www.federalreserve.gov/newsevents/pressreleases/monetary20190731a.htm
2. https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20190731.pdf