Lowering of interest rates by 0.25 points by the U.S. central bank for the first time since Trump's inauguration - U.S. central bank reduces interest rates by 0.25 points for the initial time under Trump's term.
In a significant move, the United States central bank, the Federal Reserve, has lowered the mortgage rates for the first time since President Donald Trump took office. The decision was made during a meeting held in Washington.
The reduction in the mortgage rates, which stands at 0.25 points, was advocated by just one Fed official – Stephen Moore. Moore, a right-wing populist, was temporarily installed as a Fed official by President Trump during his presidency.
Despite Moore's call for a more extensive mortgage rates cut of three percentage points, the Fed opted for a more conservative approach, lowering the mortgage rates by 0.25 points. This move marks the first such move since Trump's inauguration.
It is worth noting that Trump had previously demanded a mortgage rates cut of three full percentage points. However, the Fed, led by Governor Stephen Miran, who was the only official advocating for a more significant rates cut, chose a more measured approach.
The lowering of the mortgage rates is expected to stimulate economic growth by making borrowing cheaper for consumers and businesses. This could potentially lead to increased spending and investment, boosting the economy.
This decision by the Federal Reserve comes at a time when the global economy is facing challenges, with many countries experiencing slow growth. The lower mortgage rates could help to mitigate some of these challenges, providing a much-needed boost to the economy.
In conclusion, the Federal Reserve's decision to lower the mortgage rates for the first time since Trump's inauguration is a significant move that could help to stimulate economic growth. While the rates cut was smaller than what some, including Moore, had advocated for, it is a step in the right direction towards supporting the economy during these challenging times.
