US EditionUS Fed will likely cut again despite economic murkiness from shutdown
The Fed faces a dilemma as it cuts rates to support a weakening labor market while inflation remains above target amid limited data from the ongoing shutdown.
- On Wednesday, the Federal Reserve is expected to cut its short-term rate for the second time this year, a move analysts call the clearest amid economic uncertainty.
- The government shutdown that began October 1 has paused most official economic releases, while monthly hiring figures had weakened to an average of just 29,000 a month for the prior three months.
- September's inflation read showed Consumer Price Index rose 0.3% in September and 3.0% year-on-year, while the August jobs report added 22,000 jobs with unemployment at 4.3%.
- Traders have priced a near-certain quarter-point cut with 99.9% odds, and a cut would lower the benchmark rate target to between 3.75 percent and 4.00 percent as markets parse Jerome Powell, Fed chair's post-decision press conference.
- Beyond rates, officials consider ending the Fed's securities holdings, which peaked at nearly $5 trillion after the Fed's legal challenge against Lisa Cook reaches the U.S. Supreme Court next year.
142 Articles
142 Articles
Fed’s Logan says this week’s rate cut was not needed, opposes one in December
(Reuters) -The U.S. central bank should not have cut interest rates this week and should not do so again in December, Dallas Federal Reserve President Lorie Logan said on Friday, citing a ‘balanced’ labor market in no immediate need of support and inflation that looks likely to stay above policymakers’ 2% goal for too long. “This economic outlook didn’t call for cutting rates,” Logan said in remarks prepared for delivery to a Dallas Fed banking …
Three Cheers for Jerome Powell
Federal Reserve Chair Jerome Powell should be applauded for his decision yesterday to disabuse the markets of the notion that another Fed interest rate cut at the Federal Open Market Committee’s (FOMC) scheduled December meeting was a foregone conclusion. Not only was this the right decision for Powell to make. It was a decision that took courage in the current political context. Powell is under relentless political pressure from President Trump…
Bloomberg Editorial Board: The Fed should pause in cutting interest rates
Investors expect the Federal Reserve to cut its policy rate on Oct. 29, and once more by the end of the year. Right now, amid enormous uncertainty about where the economy is headed, the case for cutting is weak. The Fed would be wiser to pause.
Without key government data, the Fed lowers rates a quarter point
When it comes to setting monetary policy for the world’s largest economy, what data drive decision-making? In ordinary times, Federal Reserve Chair Jerome Powell and voting members of the Federal Open Market Committee, which usually meets eight times a year, have a wealth of information at their disposal, including key statistics such as monthly employment […] The post Without key government data, the Fed lowers rates a quarter point appeared fi…
Fed Slashes Rates Again — Here’s How It Could Affect Housing Affordability
by Melissa O'Rourke at CDN - The Federal Reserve announced its second interest rate cut of the year on Wednesday, reducing the benchmark rate by a quarter-point to lower the target range to 3.75%-4.00%. The decision, made by the Federal Open Market Committee (FOMC) after a two-day meeting, follows a quarter-point reduction in September. The move comes amid softer labor market … Click to read the rest HERE-> Fed Slashes Rates Again — Here’s How I…
US Federal Reserve slashes key rate for second time to support growth
The Federal Reserve cut interest rates for the second time this year to support growth and hiring despite persistent inflation and limited economic data due to the government shutdown, lowering rates to 3.9 per cent.
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