translated from Spanish: Suspense over: Fed lowers interest rate for first time since 2008

Confirming forecasts, the US Federal Reserve (Fed) on Wednesday lowered interest rates by a quarter point, to the range of 2% to 2.25%. This is the first cut in more than a decade, as the previous one dated from 2008.
The Fed’s decision goes in response to global economic weakness, which it defined as the “implications of global events,” and “dull” inflation in the country. He also hinted that he could implement a new cut by the end of the year.
The change was expected by most investors and economists, but it will surely disappoint President Donald Trump, who tweeted Tuesday that he wanted a “big cut.”
U.S. stocks moved between gains and losses after the Fed’s announcement, while Treasury bonds and the dollar also fluctuated as traders waited for the announcement’s press conference.
In Chile, there was also anticipation. The dollar broke its upward trend in the midst of the Fed meeting. he left behind the $700 barrier, dropped $4.2 and closed at $697.30 versus the $701.50 on Tuesday.
The data
The decision was made with 8 votes in favor and 2 against, those of Eric Rosengren, president of the Fed of the Boston District, and Esther George of the Kansas City Fed.
The Fed noted that economic activity remained strong in the U.S., but acknowledged uncertainty about trade tensions and global weakness.
Thus, the most recent macroeconomic data point to a slowdown in the US, as well as in Europe and China.
The U.S. economy slowed in the second quarter, according to the first official estimate, at an annual rate of 2.1% versus the 3.1% previously recorded at the start of the year.
Year-on-year inflation fell by two tenths in June to 1.6%, steadily remaining below the Fed’s annual target of 2%.
Trump’s call
US President Donald Trump had severely criticized the central bank and urged it to lower interest rates in recent months.
“The EU and China will lower their interest rates further and put more money into their systems making it much easier for their manufacturers to sell their products,” the representative said on Tuesday.
“Meanwhile, and with low inflation, our Fed does nothing, and will probably do little in comparison,” Trump added.

Original source in Spanish