JAKARTA – Central Bank of the United States of America or the Fed announced the interest-rate cut of 25 bps to 4.5%-4.75% on Thursday (7/11). This rate cut is expected to boost maximum support for workforce, thus restoring inflation to the targeted 2%.

Based on the press release of the Fed quoted Friday (8/11), Federal Open Market Committee (FOMC) mentioned that the decision has considered the additional adjustment towards the target range of federal funds rate.

“The committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” FOMC said in its official release.

FOMC will reduce its portion in treasury securities, agency debts, as well as agency mortgage-backed securities.

On the other hand, FOMC will monitor the implication of the rate-cut on the US’ economic prospects. The assessment will take into account a wide range of information, including labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

For the record, the committee consists of Jerome H. Powell, Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Beth M. Hammack; Philip N. Jefferson; Adriana D. Kugler; and Christopher J. Waller, as members. (LK/ZH)