The Federal Reserve has cut the interest rate by one-quarter of a percentage point, marking the first such cut in 11 years.
The announcement made Wednesday at the conclusion of a two-day meeting of the Federal Open Market Committee, provides an extra boost to the domestic economy as it faces threat of a global economic slowdown.
While Federal Reserve Chair Jerome Powell has acknowledged the strength of the nation’s economy — the 10-year economic expansion is the longest on record, unemployment stands at a near-historic low of 3.7 percent, and the stock market continues to chalk up record highs — the move is an attempt to guard the country against increasing geopolitical tensions as well as fallout from President Donald Trump’s protracted trade war with China.