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Federal Reserve rate cut likely, but is it a risk?

Fed is set to cut interest rates for the first time in a decade. Is it taking a needless risk?

By MARTIN CRUTSINGER and STAN CHOE, Associated Press
Published: July 29, 2019, 4:11pm
3 Photos
FILE - In this July 10, 2019, file photo Federal Reserve Chairman Jerome Powell testifies before the House Financial Services Committee on Capitol Hill in Washington. Powell has signaled that rising economic pressures, notably from President Donald Trump’s trade wars and from a global slowdown, have become cause for concern.
FILE - In this July 10, 2019, file photo Federal Reserve Chairman Jerome Powell testifies before the House Financial Services Committee on Capitol Hill in Washington. Powell has signaled that rising economic pressures, notably from President Donald Trump’s trade wars and from a global slowdown, have become cause for concern. (AP Photo/Susan Walsh, File) Photo Gallery

WASHINGTON — There’s little dispute that the Federal Reserve this week will do something it hasn’t done since 2008, when the U.S. economy was gripped by the Great Recession: Cut its benchmark interest rate.

This time, by contrast, the economy is solid by most measures. Consumers are spending. Unemployment is close to a half-century low.

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