Lower interest rates topple the US markets

After a two-day meeting of the Federal open market Committee Federal reserve decided to ease monetary policy and reduce interest rates by 0.25% to 2-2. 25%, which according to experts should take into account the situation in the world economy and to contain inflationary pressures on the US economy. Also, the fed promised to monitor carefully the impact of the situation on the growth prospects of the economy.

in Recent times, the US Central Bank lowered the rate in December 2008 during the financial crisis, after which they over the next 7 years were almost zero.

From December 2015 to December 2018, interest rate of 9 times increased by 0.25% and now they are at the level of 2.25-2.5 per cent. Over the past 25 years, the fed for the fifth time passes from increasing to decreasing interest rates.

Also, the fed announced the early completion of the reduction of assets on the fed's balance sheet, which will be held in August, that is two months earlier than planned. The decision to accelerate the reduction of the fed's balance sheet has become a factor of additional support to the markets.

U.S. Financial market reacted to the fed decision the decline in the major stock indices. No hints on further rate cuts, and 2 officials who voted against the decision, make it tougher than expected.

the U.S. Central Bank reduces rates under heavy pressure from the President trump, who more than a year of negative comments on the work of fed Chairman Jerome Powell, and urged it to cut rates.

the background for "the consequences of developments in the world economy the prospects for the US economy", which the fed called the main factor for reducing the rates, was created by President trump, who is unable to complete a trade war with China, which has a negative impact on the global economy.