The US Federal Reserve fulfilled the expectations for a rate cut, shaving off 0.25 percentage points out of the basic interest rate. The scheduled intervention thus brings the interest rate at 2.0%, with a real target of 1.75-2%.
This rate cut seems set to extend a new period of quantitative easing from the Fed, after rates were hiked to a peak of 2.5% in the past three years. The rate cuts mean a subsequent boost to liquidity, but also a potential weakening of the US dollar exchange rate. During the last meeting of the Fed, the central bank signaled at another potential rate cut by the end of 2019.
The initi...