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
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 >
FOMC preview: Fed positions for rate cut later this year
The Federal Reserve is on the precipice of a major shift in policy as the economy, hiring and wages slow amid a backdrop of muted inflation. … READ MORE >
FOMC preview: Prudent pause and revising economic outlook downward
The dovish turn at the Federal Open Market Committee’s January meeting was predicated on an interesting juxtaposition: the committee telegraphed a prudent pause in its policy normalization campaign, while not substantially revising down its forward-looking economic outlook. … READ MORE >