US EditionFederal Reserve cuts key rate as government shutdown clouds economic outlook
The Federal Reserve cut rates by 0.25% to about 3.9% amid weak jobs data and inflation above 2%, with limited government economic reports due to a shutdown.
- On Wednesday, the Federal Reserve cut its benchmark rate to about 3.9% from about 4.1% and halted the runoff of securities holdings.
- Because monthly jobs, inflation and consumer spending reports are suspended due to the government shutdown, the Fed faces a policy dilemma as hiring slows and inflation exceeds its 2% target.
- Recent data show monthly hiring gains averaged 29,000 and unemployment rate rose to 4.3%, while Fed governor Stephen Miran and Jeffrey Schmid dissented on the rate cut.
- Lower rates could reduce borrowing costs for mortgages, auto loans, credit cards and business loans, but recent cuts have disrupted money markets, raising concerns about short-term lending and liquidity.
- Market indicators show the CME Group's FedWatch tool estimates a 90.5% probability of a 25 basis-point cut at the December meeting, but Powell said decisions depend on incoming information.
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422 Articles
The US Federal Reserve has again lowered the key rate by 0.25 percentage points.
UAE Cuts Key Interest Rate by 25 Basis Points
The Central Bank of the UAE (CBUAE) has decided to cut the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points, from 4.15% to 3.90%, effective from Thursday, 30 October. This decision was taken following the US Federal Reserve’s announcement today to reduce the Interest Rate on Reserve Balances (IORB) by 25 basis points. The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquid…
Cost of US money reduced by 25 points. Damages up to 14 billion for shutdown
Federal Reserve Cuts Key Interest Rate For Second Time This Year
By Brett Rowland | The Center Square (Worthy News) – The Federal Reserve cut interest rates by a quarter-point on Wednesday for the second time this year, not nearly as much as President Donald Trump wants the central bank to reduce rates. The move lowers the Fed’s benchmark short-term interest rate to a range between 3.75% and 4%, the lowest in three years. That’s down from a peak of around 5.4%. “Available indicators suggest that economic acti…
Ringgit extends gain for seventh day after US rate cut
KUALA LUMPUR: The ringgit extended its gains for the seventh day on Thursday, opening higher against the US dollar, supported by the much-anticipated 25 basis points cut last night by the US Federal Reserve (US Fed), an analyst said.
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