Late last week Jerome Powell and his colleagues on the FOMC Board of Governors decided to continue down the path of cutting interest rates as external factors continue to threaten the strength of the US economy. The ongoing trade war with China, as well as the overall weakening of the global economy are at the forefront again as the Fed decided to lower the benchmark FFR rate from 1.75% to 1.5%. This decision also follows the latest data that shows US economic growth slowed to an annual rate of 1.9%. Powell stated that, pending any sharp downturn in the economy, he doesn't expect to cut rates any lower.
Do you think this was a wise decision by the Federal Reserve?
I think Powell is making the right move here, as the US economy seems to become more and more uncertain. I am curious to see if he does re-neg on this position of not cutting the rates lower; he might have to to keep the US growing, even it is more slowly.
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