FED cuts US interest rates for third time

Jerome Powell, chair of the US Federal Reserve Bank announced another quarter percentage point cut to the interest rate in the US, marking the third consecutive cut to the countries interest rate. The cut was again hailed as another pre-emptive move to help sustain the current economic expansion rather than a cut in the face of an economic slowdown. Whilst the cut was broadly priced into markets the comments from the FED accompanying the cut stated the FED would be reluctant to make any further cuts until the US began to show real economic weakness. Markets broadly agreed with this assessment and have subsequently priced the next rate cut well into 2020.