Fed rate cut announcement. Federal Reserve Interest Rate Cut Expected Today. What You Need to Know.

Will Another Federal Reserve Rate Cut Happen This Week?

fed rate cut announcement

Follow him on Twitter to keep up with his latest work! Federal Reserve Senior Federal Reserve officials on Wednesday voted to cut U. On the other hand, if the market feels that there could be several more rate cuts ahead, it could be a dovish signal and trigger a. So the markets have to assume that this time the Fed will take out a third insurance cut, writes Bob Baur, chief global economist at Principal Global Investors. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed. This isn't going to be one of those meetings. While the Fed is predicting significantly slower growth in 2019, Powell indicated there was little worry about a recession. The Dow Jones Industrial Average fell more than 450 points before paring its losses to close down 334 points, or 1.

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Widely Anticipated Fed Rate Cut May Backfire For Stock Market Bulls

fed rate cut announcement

The Fed on Wednesday lowered its target for the key federal funds rate by a quarter percentage point. Given that the closed at a record Monday and that unemployment stood at a half-century low in September, the need for a rate reduction might be reasonably questioned. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Dow closed the day with a 142-point loss. As noted, the stock market and the economy are doing fine. Some Fed officials have acknowledged that they may have acted too quickly in raising interest rates last year. And the two main exogenous factors facing the U.

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Fed Cuts Interest Rates For First Time Since The Recession : NPR

fed rate cut announcement

Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. Between December 2016 and December 2018, the Fed raised rates eight times. As the Committee contemplates the future path of the target range for the federal funds rate, it will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective. The Fed also announced it would stop reducingby September, a relief for Wall Street and in line with what Trump wanted, but yet another signal that the Fed felt the need to tread gently with its other key policy tool. Williams, Vice Chair; Michelle W. Another interest rate cut is likely Here's the main reason this meeting of the policy-making arm of the Federal Reserve isn't likely to be a major stock market event: Another rate cut appears to be a virtual certainty. In recent years, the Fed has been focused on raising rates, in an effort to prevent the economy from overheating.

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Federal Reserve cuts growth forecast, signals no more rate hikes in 2019

fed rate cut announcement

Voting against the action were Esther L. Federal Reserve Board Chairman Jerome Powell has been under pressure from President Trump to cut interest rates. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Growth topped 3% in the first three months of 2019, but in the second quarter. Most experts say it is not possible for the president to remove Powell, whom Trump nominated for a four-year term. In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective.

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The Fed

fed rate cut announcement

But the central bank is concerned that trade tensions with China and slowing growth in other countries could put the brakes on the economy, just as many Americans are beginning to enjoy the benefits of a slow-moving recovery. The central bank issued the following statement after its vote. Revised figures from the Commerce Department also show that in 2018. Data to be released this week may not do much to enlighten policy makers or market participants, however. Voting for the monetary policy action were Jerome H. In announcing the rate cut, Fed officials pointed to sluggish business investment and inflation that has been running stubbornly below the central bank's 2% target. But the markets also are bracing for a hawkish cut.

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Fed Cuts Interest Rates For First Time Since The Recession : NPR

fed rate cut announcement

We get a break from the projections in October. We also don't conduct monetary policy to prove our independence. The Committee will conclude the reduction of its aggregate securities holdings in the System Open Market Account in August, two months earlier than previously indicated. The move should decrease the cost of borrowing, including for credit cards, auto loans and mortgages. .

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