FXstreet.com (Barcelona) - The Federal Reserve's Monetary Policy Committee has decided to cut interest rates by 25 basis points to 2%, as widely expected after their monetary policy meeting.
The rate cut, which has been approved by 8 votes against 2, was the seventh consecutive approved by the Federal Reserve which completes the fifth rate cut since last summer, which has taken interest rates down from 5.25% to 2%.
The federal Reserve has decided to cut rates in another exercise of fine tuning of the economy, which, in one side is facing a fast rising inflation pushed by petrol and food prices and a weak Dollar, while in the other, house prices have fallen by 12% in year to year terms, and Gross Domestic product has been growing at a rather slow pace during the last two quarters.
The FOMC Committee declared that financial markets remain under considerable stress and an easing of monetary policy should help to promote moderate growth over time and mitigate risks to economic activity.
The Committee will continue to monitor economic and financial developments and suggested they could cut again rates if needed to promote sustainable economic growth and price stability.