Only the new Governor Stephen Miran, who joined the Fed on Tuesday and is licensed as head of the Blanca House Economic Advisors Council, disintected in favor of a half -point cut.
The cuts of the fees, together with the forecasts of two other casualties of a quarter percentage point in the two monetary policy meetings that remain this year, indicate that Fed officials have begun to reduce importance to the risk that the voluble commercial policies of the Government revive persistent inflation, and now they are more concerned about the weak growth and the probability that unemployment will increase.
The cut, the first of the Federal Open Market Committee since December, places the official interest rate between 4.00% and 4.25%.
“The committee is attentive to the risks on both sides of its double mandate and considers that the downward risks for employment have increased,” said the Fed in its monetary policy statement. “Employment gains have slowed down and the unemployment rate has risen.”
The president of the FED, Jerome Powell, will offer a press conference to give more details about the last statement and economic perspectives.
The new economic projections showed that monetary managers continue to see that inflation will end this year in 3%, much more than the 2% target of the Central Bank, an unchanged estimate since the last June. The unemployment forecast also remained at 4.5% and that of economic growth rose slightly 1.6% from 1.4%.
