This is a developing story. Check back here for updates.
In line with market expectations, the Federal Reserve cut interest rates to the 1.75% to 2% range on Wednesday, as it looks to protect the U.S. economy against uncertainty over trade and slowing global economic growth.
The central bank concluded its two-day meeting with Chair Jerome Powell announcing the rate cut, which will be the second consecutive one this year following a “mid-cycle adjustment” earlier in July.The Fed also telegraphed a strong likelihood of another cut before the end of the year.within the Fed’s boardroom, as opinions differed over mixed U.S. economic data and whether to institute more quantitative easing.
The market had already priced in dovish expectations for another rate cut, so the news doesn’t come as a shock—but the Fed’s division over future rate policy will add to investor uncertainty. The quarter point rate cut also aggravated President Trump, who has repeatedly criticized the central bank’s monetary policy. He recently called for rates to be reduced to “
”—which would create a negative interest rate environment similar to what is currently happening in Europe and Japan.A few more rate cuts could be needed to prop up a slowing U.S. economy as well as reduce pressure on the inverted yield curve. It remains to be seen whether the Fed plans on additional rate cuts beyond this year, as further accommodation could be needed to thwart geopolitical risks including the China trade war, tensions in the Persian Gulf, and even Brexit.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Fed cuts rates again, telegraphs more rate cuts by year endThe Federal Reserve will announce its next moves on rates this afternoon. Wall Street is expecting a 25 basis point cut.
Consulte Mais informação »
Fed slices interest rates for second time since the 2008 recessionThe Fed also injected $75B into the economy, after companies withdrew capital to pay taxes. The last time the Fed made such a move was during the 2008 financial crisis.
Consulte Mais informação »
The Fed is expected to cut interest rates, here's what that means for youAn economist breaks down what the Fed's rate cut today could mean for your mortgage, car payment, savings and more.
Consulte Mais informação »
US stocks fall ahead of Fed decision on interest ratesNEW: U.S. stocks open down ahead of a highly anticipated decision from the Federal Reserve on interest rates.
Consulte Mais informação »
Expectations suddenly are rising that the Fed might not cut interest rates this weekTraders in the fed funds futures market on Monday were pricing in a 34% chance that the Fed will stay put on rates.
Consulte Mais informação »