At this critical juncture, with the policy rate residing in neutral terrain, it is natural for the Fed to adjust its rhetoric as it considers next steps. … READ MORE >
fed funds rate
Fed leaves rates unchanged and points to shift on inflation target
The Federal Open Market Committee on Wednesday said it had retained its accommodative policy stance by keeping the federal funds rate in a range between 1.5% and 1.75%. … READ MORE >
FOMC policy decision: ‘Catch-22’ in a monetary context
Demands by market actors for accommodative policy linked to a diminished global and domestic economic outlook resulted in a reduction in the federal funds rate by 25 basis points to a range between 1.75% and 2%. In our estimation, this is likely not the final rate cut of 2019 by a central bank clearly concerned with the direction of trade policy, a modest exogenous supply shock in oil markets and political pressure from the executive branch to reduce rates. … READ MORE >