US EditionFederal Reserve cuts key rate as government shutdown clouds economic outlook
The Federal Reserve cut rates to 3.75%-4.00% amid labor market risks and incomplete economic data during a prolonged government shutdown, signaling cautious policy amid inflation above target.
- 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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Bitcoin Tumbles 4% on News of the Federal Reserve's Latest Rate Cut. Should Investors Be Concerned?
Key PointsInterest rate cuts are generally good for the crypto market, but Bitcoin is falling after the Fed announced a rate reduction yesterday.The Fed reduced benchmark interest rates by a quarter point, but investors are feeling less confident about a rate cut in December. The crypto market can see big swings in conjunction with macroeconomic news, but investors shouldn't overreact to recent pricing trends. 10 stocks we like better than Bitco…
The US Federal Reserve has again lowered the key rate by 0.25 percentage points.
Fed lowers benchmark intetest rate
Amid a softer labor market, the United States' Federal Reserve (Fed) voted Wednesday to cut its benchmark interest rate by 0.25 basis points, moving the target range to 3.75%–4%. This marks the lowest level in three years and continues the easing cycle dating back to last month.
Federal Reserve cuts interest rates for second-straight time, marking lowest level in three years
The Federal Reserve on Wednesday lowered its benchmark interest rate by 0.25 percentage points — its second cut of the year — as policymakers attempt to steady an economy grappling with slowing job growth, elevated inflation, and an ongoing government shutdown. The decision brings the federal funds rate down to a range of 3.75% to 4%, from 4% to 4.25%, following a similar cut in September that marked the Fed’s first rate reduction since late 202…
US Fed cuts interest rates
The US Federal Reserve has lowered its benchmark interest rate by 0.25 points to 3.75–4 per cent and said it will end balance-sheet runoff on December 1, according to the official Federal Reserve statement. Chair Jerome Powell said a further cut in December is “far from guaranteed”, cited by Reuters, a remark that tempered market hopes of rapid easing. The Fed’s decision lowered the federal… Source
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