US Fed rate cut: Why it matters to Kenya, the world

Federal Reserve Chairman Jerome Powell arrives for a news conference following a two-day Federal Open Market Committee meeting in Washington DC on June 19, 2019. [File, Agencies]

The US Federal Reserve Bank recently cut the interest rate, a few weeks after the Central Bank of Kenya (CBK) did the same.

The old dictum that the government has no business in business is not supported by reality.

The government intervenes in business through monetary and fiscal policies. Interest cuts affect your business; lower rates mean more borrowing, spending, and growth despite the risk of inflation.