This archive report was first published on 9 October 2019.
On September 18, 2019, the Federal Reserve cut interest rates for a second time that year, a move aimed at shielding the economy from the impact of trade tensions and a global slowdown.
According to minutes of the meeting, policymakers were increasingly worried about the risks to the economy, citing President Trump's trade war, the threat of a chaotic British exit from the European Union, and protests in Hong Kong.
“Participants generally had become more concerned about risks associated with trade tensions and adverse developments in the geopolitical and global economic spheres,” the minutes stated.
Despite expecting the economy to continue growing steadily with the help of their rate cuts, policymakers were concerned that uncertainties in the business outlook and sustained weak investment could eventually lead to slower hiring, which could dampen the growth of income and consumption.
