Frederic Mishkin

Fed cuts rates half a point, is open for more

In its statement, the Federal Open Market Committee said it had unanimously decided to cut its benchmark target interest rate by a half of one percentage point to 1% and clearly signaled it was considering further cuts. This signal came in a statement saying that the main risk facing the economy was weak growth.

Any more rate cuts would bring the funds rate to its lowest level since July 1958.

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