Fed Cuts Interest Rates by Another Quarter Point
Source: New York Times
WASHINGTON The Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday, its second move since late July, as it tries to insulate the economy against rising political risks and the fallout from a global slowdown.
A growing number of officials expect one more reduction this year, based on economic projections released following the meeting, in-line up with investor and economist expectations.
But the Feds announcement on Wednesday is unlikely to appease President Trump, who has been pushing the central bank to cut interest rates to zero or even into negative territory. The Feds policy interest rate is now set in a range of 1.75 to 2 percent, and not a single official sees it falling lower than 1.5 to 1.75 percent through the end of 2022.
While risks cloud the horizon, economic data still look O.K., creating a complicated backdrop for the central bank. Businesses are hiring and consumers are spending, but Mr. Trumps ongoing trade war and prospects of an unruly Brexit have markets on edge. Meanwhile, inflation has been stuck below the Feds target, giving officials room to lower rates without worrying about runaway price gains.
Read more: https://www.nytimes.com/2019/09/18/business/economy/fed-interest-rate-cut.html
redstatebluegirl
(12,264 posts)Card rates stay the same? Those rates impact everyday Americans in a serious way.
IronLionZion
(45,265 posts)Other types of loans are more noticeable, like mortgages
https://www.cnbc.com/2019/09/18/heres-what-the-feds-interest-rate-cut-means-for-your-wallet.html
pangaia
(24,324 posts)Dec 2018 I was getting about 2.75 on a 1 year T-Bill.
Now 1.89 and heading lower..
Yavin4
(35,357 posts)Pushing savers into an over-valued market is no way to run a railroad.
IronLionZion
(45,265 posts)In completely unrelated news, the NY Fed injected billions in stimulus into the overnight lending market for the second day in a row, since they're winning so much they're getting tired of winning.
underpants
(182,283 posts)Uh oh.
IronLionZion
(45,265 posts)Hassin Bin Sober
(26,273 posts)When it comes to bailing out Wall Street nobody asks HOW ARE WE GOING TO PAY FOR IT?
blue-wave
(4,317 posts)The overnight (repo or repurchase) thing played a role in the 2007-2008 collapse. Not again, please!
benld74
(9,889 posts)Slept like a baby
Woke up every hour screaming and crying
The Liberal Lion
(1,414 posts)will not be going towards development and invention, but rather towards rising the debt load of consumers.
blue-wave
(4,317 posts)Negative rates and hyperinflation?
And where do they get that inflation is "stuck" below their target? Has anyone seen the price of homes lately? How about tuition costs or the inflated stock market? Groceries anyone, groceries? Yeah, I love those smaller portioned packages with the same or slightly higher prices. Oh that's right, that stuff doesn't matter, we don't factor it in the inflation rate. Nothing to see here, move on.