It didn’t happen despite the speculation last month, but the Federal Reserve is likely on the verge of cutting interest rates.
Fed Chair Jerome Powell, during Congressional testimony last week, the cuts are not because of anything happening with the American economy.
“Economic momentum appears to have slowed in some major foreign economies. That weakness could affect the U.S. economy,” Powell stated.
Lone Star College economist Hank Lewis told KTRH what happens overseas impacts America.
“We don’t live in a vacuum. We trade with China very actively. We trade very actively with European nations,” Lewis said.
He also said the cut will make President Trump happy.
“Trump has wanted to see the interest rate cut. He wants to see the economy grow some more. He wants to see the expansion continue and gain some momentum,” Lewis explained.
And this may not be the only cut this year. There could be another cut later this year.