Slowing domestic and global economic growth, persistent uncertainties about trade and inflation running beneath the Federal Reserve’s 2% target were key reasons behind the Federal Open Market Committee’s decision to cut interest rates for the first time in a decade, according to the minutes from the July 30-31 meeting released today.
The committee noted signs of slowing in the U.S. economy, particularly in business and fixed investment, coupled with continued slowing in overseas markets. Members also noted that concerns about trade and other geopolitical events remained elevated, and concluded that “a policy easing at this meeting would be a prudent step from a risk-management perspective.”
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