Fed leaves key interest rate unchanged, hints at possible rate cut in September, reflecting economic concerns

From Alphabet Inc.: 2024-08-02 03:31:06

The Federal Reserve decided to keep its key interest rate unchanged but hinted at a potential rate cut in September to support the economy. The decision was influenced by concerns about global economic growth and trade tensions with China. Inflation remains below the Fed’s target of 2%.

Fed Chairman Jerome Powell emphasized the central bank’s commitment to sustaining the economic expansion but indicated that risks to the economy have increased. The Fed’s decision to hold off on a rate cut was not unanimous, with two members voting for an immediate reduction. The next Fed meeting is scheduled for September 17-18.

The stock market responded positively to the news, with the Dow Jones Industrial Average gaining over 300 points after the Fed’s announcement. Investors are hopeful that the Fed’s willingness to consider a rate cut in September will provide a boost to the economy. The decision reflects concerns about a potential economic slowdown and the impact of ongoing trade disputes.



Read more at Alphabet Inc.: Fed leaves key interest rate unchanged, signals possible rate cut in September – USA TODAY