The Fed’s careful balancing act of making insurance cuts to guard against global economic headwinds and normalize the yield curve without committing to extended cuts seems to have now gained acceptance with the markets. The entire yield curve has shifted lower since the July meeting because of the three rate cuts made this year. … READ MORE >
federal funds rate
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 rate cuts. The change to the policy statement notes the central bank will monitor incoming information as it “assesses the appropriate path” of rates. … 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%. … 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 Reserve Open Market Committee sought to provide a cushion to a rapidly deteriorating global economic environment that will likely spill over into the U.S. economy and muted inflation. … 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 Wednesday. … READ MORE >