The Federal Reserve has moved the federal funds rate to the zero bound in a series of swift responses to the outbreak of the coronavirus and the market’s anticipation of the shock to economic growth and market stability. The Fed has put together nine different lending facilities and put forward ... READ MORE >
federal funds rate
The Fed cut its policy rate by a half percentage point. Expect more to come.
The Federal Reserve on Tuesday reduced its policy rate to a range between 1.0% and 1.25% as the central bank implemented a preemptive cut to bolster financial conditions as the coronavirus continues to spread. The use of monetary firepower is a clear signal to policymakers and investors that there will be ... READ MORE >
Expect the Fed to stick to the script
We expect the Federal Reserve will keep its policy rate in a range between 1.50% and 1.75% at the December FOMC meeting on Tuesday and Wednesday. The major interest of investors and policymakers will naturally be the movement in the dot plot, which we expect to move into alignment with the current policy ... READ MORE >
The Fed walked a tightrope in cutting rates, and succeeded
In July, the Fed did what markets had been pushing for when it cut the federal funds rate by a quarter percentage point. But rather than calm the markets, the Fed only added to the concern when it did not send a clear message that there were more cuts to come. Advocates for more rate cuts maintained ... READ MORE >
Fed cuts interest rate, but does not commit to more
The Federal Reserve reduced its targeted federal funds rate by a quarter point to a range between 1.5 and 1.75 percent at its October meeting Wednesday. In its policy statement, the committee removed the phrase “act as appropriate,” possibly opening the door to taking a wait-and-see approach to additional ... READ MORE >
Expect the Fed to cut its target rate by a quarter point
We expect the Federal Reserve to cut the federal funds rate this week by 25 basis points to a range between 1.50% to 1.75% as the central bank attempts to offset the downward drag of the trade conflict and challenges in the domestic manufacturing sector. But policymakers, investors and firm managers ... READ MORE >
Fed cuts interest rates with another cut likely in September
Reductions or increases in U.S. Federal Reserve’s policy rate are often like trying to kill a mosquito with an anvil; they may get the job done but the fallout is always widespread and sure to cause a commotion. So it is with today’s rate cut as the Federal Open Market Committee sought to provide a ... READ MORE >
FOMC Preview: Insurance against a greater pace of economic deceleration
A sagging global economy dragged down by a trade war and a domestic manufacturing sector on the edge of contraction are sufficient risks to warrant a 25-basis-point-reduction in the federal funds rate to 2% to 2.25% percent when the Federal Open Market Committee concludes its policy meeting on ... READ MORE >