The world’s most powerful central bank is poised to cut its benchmark rate for the first time since 2008. The reasons couldn’t be more different.
Back then, the economy was in freefall after a spike in foreclosures deflated the value of bonds backed by home loans. This time, more than a decade later, Federal Reserve policymakers aren’t dealing with a financial crisis. They’re trying to keep the nation’s longest expansion from petering out.
The Fed’s policy-setting Federal Open Market Committee, or FOMC, has a two-day meeting that starts on Tuesday. On Wednesday at 2 p.m. it will issue a statement with its decision on whether to maintain or change its overnight lending rate, an important benchmark for financial markets.
Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.