<Anchor>

During the night, the Federal Reserve System, the US central bank, lowered the benchmark interest rate by 0.25 percentage points. It is an analysis that the interest rate cut is 10 years and 7 months since 2008 when the global financial crisis suffered, and it has insurance character in preparation for the economic slowdown.

In Washington, Son Seokmin correspondent reports.

<Reporter>

The Fed has lowered the benchmark interest rate as the market expects. The Fed has lowered its federal funds rate by 0.25 percentage point at its regular meeting.

[Powell / Federal Reserve Chairman: We have decided to lower the federal funds rate target by 0.25 percentage points from 2.00 to 2.25%.]

In addition, we decided to close down our assets two months earlier by selling bonds to the market and collecting the dollar.

The Fed's benchmark interest rate cut is only 10 years and 7 months since December 2008, the time of the global financial crisis.

The Fed maintained that the US economy is growing at a moderate pace and that the labor market is strong, as seen by the unemployment rate, which is the lowest in a half century.

However, uncertainties remain about the prospects for economic expansion, as corporate investment is weakening.

[Powell / Federal Reserve Chairman: The prospects for the US economy are in good shape, and this measure is intended to support this prospect.]

It was followed by an explanation of insurance cuts in preparation for the economic slowdown in China and Europe.

But Powell said he did not think the long-term rate cut was the start.

The New York stock market, which was expecting sustained cuts with this statement, fell more than 1 percent in disappointment.