US Fed cuts interest rate by 25 basis points. | CountingPips Forex & Currency Trading Blog

April 30, 2008 - Forex Economic News

US Fed cuts interest rate by 25 basis points.

As widely expected, the U.S. Federal Open Market Committee reduced its benchmark interest today by 25 basis points. The FOMC decision brought the interest rate down to 2.00 percent from 2.25 percent, a level last seen in 2004. Today's reduction also marked the seventh rate reduction since September of 2007. The committee vote in favor of the rate cut was 8-2 with Fed Governors Richard W. Fisher and Charles I. Plosser dissenting.

The statement accompanying the rate decision cited many of the problems affecting the growth of the U.S. economy, "Recent information indicates that economic activity remains weak. Household and business spending has been subdued and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters." The next interest rate decision for the FOMC is scheduled for June 25th.

The U.S. dollar has fallen in forex trading against most of the major currencies after the interest rate release.

Tags: US Fed, Interest Rates, US Economy, FOMC

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