It was widely expected,... but a highly significant move nonetheless, and undoubtedly music to the ears of President Trump who has been pushing hard for it.<br />The U.S. Federal Reserve has cut rates for the first time in more than a decade.<br />Led by its Chairman Jerome Powell,... Fed policymakers voted on Wednesday in favor of cutting the Federal Funds rate.<br />They also committed to sustain the country's longest economic expansion in history.<br />Lee Seung-jae reports.<br />The U.S. Federal Reserve lowered its interest rates on Wednesday for the first time since the 2008 global financial crisis.<br />Led by Fed Chairman Jerome Powell,... policymakers voted eight to two in favor of a small cut.<br />The cut,... widely forecast by analysts,... affects the cost of borrowing for credit cards and mortgages in the U.S.,... and will hover between the two-percent to two-and-a-quarter percent range.<br /><br />"We decided today to lower the target for the federal funds rate by a quarter of a percentage point to a range of 2% to 2 1/4 percent. The outlook for the U.S. economy remains favorable and this action is designed to support that outlook point."<br /><br />President Trump has long criticized the Fed and its current chair,... saying they're not doing enough to boost the American economy.<br />However, according to Powell,... the decision to cut rates was not affected by Trump's constant criticisms, but instead done in the hope it boosts the U.S. economy in the face of a global economic slowdown.<br /><br />"Through the course of the year, weak global growth, trade policy uncertainty and muted inflation have prompted the FOMC [Federal Open Market Committee] to adjust its assessment of the appropriate path of interest rates. The committee moved from expecting rate increases this year to a patient stance about any changes and then to today's action."<br /><br />Major U.S. stock indexes plunged after the announcement.<br />Watchers say Wall Street had priced in a more aggressive rate cut of half-a-percentage point rather than the quarter-point cut that wound up happening.<br />The smaller cut prompted a stock sell-off and pushed bond yields higher.<br />However, with the Fed also pledging to "act as appropriate to sustain the expansion",... market analysts believe further rate cuts are in the pipeline.<br />Lee Seung-jae, Arirang News.<br />
