The Federal Reserve reduced the federal funds rate by 25 basis points, bringing the target range down to 1.75 percent to 2 percent, according to CBRE. With this reduction, monetary authorities are moving to mitigate the negative effects of various risk factors — largely external — that continue to mount. Additionally, the interest rate on excess reserves was reduced to 1.8 percent —representing a decrease of 30 basis points — to alleviate stress in short-term lending markets.
The global economic picture has continued to become more clouded as growth slows in large economies across Europe and Asia. Ongoing trade disputes — along with Brexit, heightened Middle East tensions and other geopolitical risks — are weighing on economic growth. In the United States, inflation remains subdued — giving the Fed flexibility to take a more accommodative policy stance — and both
