(Matthew Du, NewsUSA Reporter)
- The Fed aims to cut interest rates this year, provided inflation returns to its 2% target of the year. Fed chair Jerome Powell highlights that we may not even notice cuts as early as March, the central bank is simply looking to see more evidence that confirms that it is a good time to lower interest rates.
Note that lowering interest rates encourages money lending. This process bolsters consumer and business spending and investment, which can boost asset prices over the short term. This is done in careful balance with inflation as declining interest rates are known to lead to inflation.
