US Fed cuts key interest rate to ‘insure’ vs risks

WASHINGTON, D.C.: The US Federal Reserve, under intense pressure from Donald Trump to stimulate the economy, produced on Wednesday (Thursday in Manila) the first interest rate cut in more than a decade but struggled to justify the move or explain where it goes next.

The move to ease the cost of borrowing was well telegraphed as meant to “insure” against risks washing onto American shores from abroad but financial markets were whipsawed by confusion over whether another cut would be coming.