U.S. Cuts Interest Rates Again

The Federal Reserve Board (FRB) will announce the additional reduction of the interest rate in the afternoon of 27th (Korea Time 3:00 am on 28th). The FRB reduced the interest rates of 2.5 percent in total of five times thus far this year, is expected to cut the interest rate 0.25-0.5 percent from the current rate of 4 percent in order to revived the weakened economy.

The central bank`s policy-making group, the Federal Open Market Committee (FOMC), plans to declare the U.S.`s current economic situation and the reduction of the interest rate.

The economic experts of the U.S. anticipate that since the U.S. economy has not shown the signal of recovery in spite of the consecutive reduction of the interest rate, the FRB will for sure cut the additional interest rate.

Shin Chi-Young higgledy@donga.com