The Federal Reserve cuts interest rates by a quarter of a percentage point and expects two more cuts this year.

Arabian Sea Newspaper - Special

Arabian Sea - Follow-ups: The US Federal Reserve decided to cut interest rates by 25 basis points to a range of 4% to 4.25%, in the first cut this year, after holding rates steady in five consecutive meetings. The Board indicated that it expects to implement two additional cuts before the end of this year, amid increasing pressure on the labor market and growing economic risks. The decision comes after the Board's sixth meeting this year on monetary policy, which lasted Tuesday and Wednesday to discuss interest rate trends, at a time when the US labor market is witnessing a significant decline, in addition to pressure from the administration of US President Donald Trump to reduce borrowing costs. The Federal Open Market Committee said in its statement that recent data indicate a slowdown in economic activity growth in the first half of the year, with a slowdown in employment gains and a slight increase in the unemployment rate, although it remains at historically low levels. It added that inflation has risen and remains above the target level. Source: Middle East News Agency