Federal Reserve Chairman Jerome Powell announced the central bank will lower interest rates for the first time since the Great Recession in 2008 to help stave off the possibility of an economic downturn. Federal Reserve Chairman Jerome Powell announced the Fed will lower its target federal funds interest rate by 25 basis points to a range of 2.0% to 2.25%. Powell stated the Fed still viewed the outlook for the U.S. economy as favorable, but the interest rate cut is expected to ensure continued economic growth. He further stated the rate cut is intended to offset weak global growth and trade policy uncertainty. The lower interest rate is also expected to increase inflation slightly to keep it hovering near the Feds 2.0% target inflation rate. Powell indicated the rate cuts overall goal was to sustain the current economic expansion while keeping prices stable. Please answer the following 6 questions using your current knowledge. What effect might this have on the interest rate of a car loan when you finance your purchase of a new car? Does it mean that a house will be more or less affordable in the future? Will it make it easier or harder for you to get a job next year? Why would the Fed use such a policy? Conduct a quick search on the internet, does President Trump agree with this policy? Do you think a recession is coming soon? Why or why not?