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Fed cuts interest rates by 25 bps

Fed cuts interest rates by 25 bps

Mubasher: The Federal Reserve on Wednesday decided to reduce interest rates by 25 basis points (bps), marking the end of the qualitative tightening programme.

The Fed expected that its decision would boost the economy, according to the Fed statement.

“[The FOMC] will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labour market and inflation near its symmetric 2% objective,” the committee said.

On Monday, former chair of the US Federal Reserve Janet Yellen said that she is in favour of a cut of 25 basis points (bps) in the central bank’s benchmark interest rate, amid a faltering global economy and slower inflation.

In March, the Fed decided to maintain interest rates between 2.25% and 2.5%.