The US Federal Reserve is set to cut interest rates for the first time in 10 years this evening, with the raging trade war with China and signs of slowing momentum darkening policymakers’ moods. Yet US economic growth is stronger than its peers and unemployment is at record lows, meaning the Fed will likely plump for a small reduction of 25 basis points (0.25 percentage points). Read more: Traders foresee small Fed interest rate cut Although traders think there is a 77 per cent chance of a smaller cut, President Donald Trump has made it clear he wants a bigger cut to the main federal funds target rate, which currently stands at between 2.25 per cent and 2.5 per cent. “The Fed ‘raised’ way too early and way too much. Their quantitative tightening was another big mistake,” he said on Twitter on Monday. “A small rate cut is not enough, but we will win anyway!” Trump has repeatedly attacked the Fed’s decision to raise the main rate from the … [Read more...] about Fed interest rate cut: Will Donald Trump get what he wants?
Feds raise rates today
The US Federal Reserve is set to slash interest rates for the first time in nearly a decade when it meets at the end of this month, although there is confusion about the size of the cut. Read more: ‘Faulty thought process’: Trump lashes out at the Fed Market participants now think it is certain that the Fed will ease interest rates, according to a gauge from exchanges company CME Group which was updated today. But the market thinks there is a 77.5 per cent chance that the cut will be 25 basis points, or 0.25 percentage points, while 22.5 per cent think the cut will be deeper at 50 basis points. Hopes of a heavy rate cut were boosted last week by John Williams, the president of the New York Fed, who in a speech said it “pays to act quickly to lower rates at the first signs of economic distress”. Yet the NY Fed soon rowed back on his comments, saying they reflected his academic research and did not indicate policy. This rare move steered markets back to thinking a … [Read more...] about Traders foresee small Fed interest rate cut
Sections SEARCH Skip to content Skip to site index Business Subscribe Log In Log In Today’s Paper Business | Fed Leaves Rates Unchanged and Says Inflation Is Below Target Advertisement Supported by BREAKING ByJeanna Smialek May 1, 2019 The Federal Reserve left interest rates unchanged on Wednesday and noted that inflation is coming in below the central bank’s goal. Fed officials have raised rates nine times since 2015, with four increases coming under the leadership of Fed Chairman Jerome H. Powell. But they have adopted a patient stance this year, first as growth wavered and more recently as price gains have fallen further below the policy-setting Federal Open Market Committee’s 2 percent target. “Overall inflation and inflation for items other than food and energy have declined and are running below 2 percent,” the committee said in a statement after its two-day policy … [Read more...] about Fed Leaves Rates Unchanged and Says Inflation Is Below Target
Sections SEARCH Skip to content Skip to site index Politics Subscribe Log In Log In Today’s Paper Politics | Fed Holds Rates Steady and Predicts No Increases in 2019 Advertisement Supported by BREAKING ByJim Tankersley March 20, 2019 WASHINGTON — The Federal Reserve expressed increasing concern about slowing economic growth as it left interest rates unchanged on Wednesday and showed little appetite for raising them in the near future. The Fed’s fairly downbeat economic assessment is at odds with the White House’s rosy economic projections, which have continued to predict stronger growth than most other forecasters say is likely. The Fed, in a statement at the conclusion of its two-day policy meeting, said “growth of economic activity has slowed from its solid rate in the fourth quarter” and cited slowdowns in household spending and business fixed investment. Fed officials … [Read more...] about Fed Holds Rates Steady and Predicts No Increases in 2019
By Michael S. Derby WSJ Thu., Feb. 7, 2019 St. Louis Fed leader James Bullard again said Thursday the central bank doesn’t need to raise rates any further to achieve its job and inflation goals. “Through its normalization program, the [Federal Open Market Committee] has already been sufficiently pre-emptive over the last two years to contain upside inflation risk,” Mr. Bullard said in a presentation prepared for an audience in St. Cloud, Minn. Mr. Bullard, a voting member of the FOMC this year, has been one of the Fed’s biggest opponents of rate rises since 2016. For most of that time he has fought a lonely battle, but that changed at the start of this year. At the Federal Reserve meeting last week, officials refrained from raising rates and said they need to take stock of the economy’s performance as storm clouds form over the global economy. A lack of inflationary pressures also gives them space to hold off on further increases. Mr. … [Read more...] about Fed’s Bullard Says No Need to Raise Rates Again