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My colleagues at the Federal Reserve and I are dedicated to serving the American people. We do this by steadfastly pursuing the goals Congress has given us - maximum employment and stable prices. We are committed to making the best decisions we can based on facts and objective analysis.
Today, we decided to lower interest rates. As I will explain shortly, we took this step to help keep the US economy strong in the face of some notable developments and to provide insurance against ongoing risks. Since the middle of last year, global growth, the global growth outlook has weakened, notably in Europe and China.
Additionally, a number of geopolitical risks, including Brexit, remain unresolved. Trade policy tensions have waxed and waned and elevated uncertainty is weighing on US investment and exports. Our business contacts around the country have been telling us that uncertainty about trade policy has discouraged them from investing in their businesses. Business fixed investment posted a modest decline in the second quarter and recent indicators point to continued softness.
Today's decision to lower the federal funds rate target by a quarter per cent to 1.75 per cent to two per cent is appropriate in light of the global developments I mentioned, as well as muted inflation pressures. Since our last meeting, we've seen additional signs of weakness abroad and a resurgence of trade policy tensions, including the imposition of additional tariffs. The Fed has no role in the formulation of trade policy, but we do take into account anything that could materially affect the economy relative to our employment and inflation goals.
