As expected, the Federal Reserve has announced that it has cut the key interest rates it controls by 25 basis points.
Specifically, it has cut the target rate for the Fed Funds rate to 1.50-1.75%. The previous range was 1.75 to 2.00%.
This is a developing story. Return to this post for updates.
UPDATE 1
The Fed’s rate-setting committee voted 8-2 to lower the rate.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; James Bullard; Richard H. Clarida; Charles L. Evans; and Randal K. Quarles. Voting against this action were: Esther L. George and Eric S. Rosengren, who preferred at this meeting to maintain the target range at 1-3/4 percent to 2 percent.
UPDATE 2
The Fed made key changes to the language of its statement on monetary policy. The changes suggest the Fed does not plan any immediate further rate cuts.
Most important, instead of saying it would “act as appropriate to sustain the expansion”, it said it will “assess the appropriate path” of for rates.
For Fed speak observers, this means the Fed is going to the sidelines for now and no further rate cuts are planned.
More analysis in the EPJ Daily Alert.
Trump will keep this illusion of a booming economy going through the election, assuming he avoids all six ways from Sunday on the way there
ReplyDeleteAnd here comes another cut in the rate on my savings. These Fed guys kill me
ReplyDeleteThis is fine if you borrow but bad if you are trying to save !!
ReplyDelete