Fed cuts rates and halts balance sheet reduction

Jerome Powell
Federal Reserve

The Federal Reserve reduced its policy rate today (July 31) for the first time since September 14, 2008, amid a global economic slowdown and muted inflation.

It also announced it will conclude its balance sheet normalisation programme in August, two months earlier than it previously indicated.

The central bank lowered its federal funds target range by 25 basis points to 2–2.25%.

The decision came with two hawkish dissents from the Kansas and Boston Fed presidents Esther George and Eric

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