Washington: The U.S. Federal Reserve on Wednesday lowered its benchmark interest rate by a quarter percentage point in the first reduction this year, following mounting pressure from President Donald Trump to cut the rate to help boost the economy.
According to Yonhap News Agency, following the two-day Federal Open Market Committee (FOMC) meeting, the central bank decided to lower the key rate to the 4-4.25 percent range. It marked the first reduction since the Fed announced a 25-basis-point cut in December last year.
This week’s rate decision put the gap between the key rates of South Korea and the United States at up to 1.75 percentage points. The rate decision came as Trump has raised pressure on Fed Chair Jerome Powell to lower the rate amid lingering concerns that Trump’s tariff policy could lead to higher prices. On Monday, the president renewed calls for a “bigger” reduction.
“‘Too Late’ MUST CUT INTEREST RATES, NOW, AND BIGGER THAN HE HAD IN MIND. HOUSING WILL SOAR!!!” Trump wrote on Truth Social.