The United States Federal Reserve was less generous than at its previous meeting on its much anticipated reduction of interest rates as it yesterday announced that it has reduced its interest by 0.25% bringing its main rate to 4.75%. US Treasury Secretary Janet Yellen was calling for a 0.5% reduction like last meeting.
In its statement, the Federal Reserve stated that inflation was going down according to its projections but it is still elevated.
In his press conference, asked about what is the Federal Reserve doing to help ordinary citizens, Chairman Powell admitted that ordinary citizens are still feeling the effects of high prices, blaming the “inflation whirlwind” of 2022 and said that the Fed is trying to push wages higher with its policies.
Asked about whether he would resigned if requested by government, Chairman Powell replied with a simple “no”. Pushed to elaborate on the matter, Chairman Powell simply stated that “It is not permitted by law”. Donald Trump vowed to fire Jerome Powell once he is in office and has criticised him for raising rates too high. Donald Trump also bears a grudge against Chairman Powell for raising rates during his presidency.
Following the Fed’s statement and press conference, the US five-year treasury note closed at a yield of 4.18% with US stock markets hitting another all time high.
Newsroom
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