CBRE: Fed cuts key interest rate for second time this year

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