Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Now:
Last Hour:
Last 24 Hours:
Total:

Federal Reserve cuts US interest rates for second time this year, gives mixed signals about next steps

% of readers think this story is Fact. Add your two cents.


US blue chips extended earlier falls on Wednesday as the Federal Reserve, as expected, cut US interest rates by 25 basis points for the second time this year but gave mixed signals about its next steps on monetary policy.

The Federal Reserve Open Market committee meeting agreed to lower the central bank’s benchmark overnight lending rate to a range of 1.75% to 2.00% on a 7-3 vote, citing ongoing global risks and “weakened” business investment and exports.

In its policy statement, the Fed said that it was cutting rates “in light of the implications of global developments for the economic outlook as well as muted inflation pressures” even though the US economy continues growing at a “moderate” rate and the labor market “remains strong”.

READ: Trump slams Fed Chair Powell, calls for negative rates in early morning Twitter rant

Of the three dissident FOMC voters, St. Louis Fed President James Bullard wanted a 50 basis point cut, while Boston Fed President Eric Rosengren and Kansas City Fed President Esther George both did not want a rate cut at all.

The statement also revealed little change in policymakers’ projections for the economy, with growth seen at a slightly higher 2.2% this year and the unemployment rate to be 3.7% through 2020. Inflation is projected to be 1.5% for the year, below the Fed’s 2% target, before rising to 1.9% next year.

The Fed also cut rates by 25 basis points in July, which was the first such move since 2008.

Fed Chair Jerome Powell is scheduled to hold a press conference at 2:30 pm ET  to elaborate on the central bank’s policy decision.

In a quick initial comment on the Fed decision, Naeem Aslam, senior market analyst at thinkmarkets.com said: “We have a hawkish rate cut – meaning even though the Fed has cut the interest rate today but there are no clear signals in relation to further rate cuts. In other words, the Fed is no rush to cut the interest rate again.

“The current move by the Fed has made the dollar stronger and pushed the gold price lower. But remember it is all about Trump twitter rant and it is something that traders cannot ignore.”

President Donald Trump had demanded more from Fed officials, whom - in a tweet last week - he insulted as “boneheads” who have put the economic recovery in jeopardy.

Trump’s instant tweet reaction to today’s moves was: “Jay Powell and the Federal Reserve Fail Again. No ‘guts,’ no sense, no vision! A terrible communicator!”

On Wall Street, the benchmark Dow Jones Industrials Average dropped 180 points, or 0.7% to 26,922 following the Fed news, with the broader S&P 500 index shedding 0.8% and the tech-laden Nasdaq Composite losing 1.1%.

Contact the author at [email protected]

Story by ProactiveInvestors



Source: https://www.proactiveinvestors.com/companies/news/902992/federal-reserve-cuts-us-interest-rates-for-second-time-this-year-gives-mixed-signals-about-next-steps-902992.html

Support BeforeitsNews by trying our natural health products! Join our affiliate program
Order by Phone at 888-809-8385 or online at www.mitocopper.com


Get our Free Ebook, "Suppressed Health Secrets"  with  Natural Cures THEY don't want you to know!

APeX - Far superior to colloidal silver!  Destroys Viruses, Bacteria, Pathogens with Oxygen plus Silver!Supreme Fulvic - Nature's most important supplement! Vivid Dreams again!
Ultimate Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!  
Organic Hemp Extract (CBD) - Full Spectrum high CBD (3300mg) hemp extract eases stiff joints, relieves stress and more!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)


FINAL WARNING!   Diseases are EXPLODING!  Watch this Video about APeX and You'll THROW AWAY Your Colloidal Silver!   APeX destroys Viruses, Bacteria and other Pathogens with the power of Oxygen PLUS Silver!  Nobody else has a product like THIS!   See why the inventor hasn't been sick in 16 years and why you'll never hear about it on the FAKE NEWS!  Get some now and tell your friends about it too so we can reach more people!  

APeX Interview - Superior to Colloidal Silver from Lee Canady on Vimeo.

Learn about APeX Here and Get the 50 Page Report in PDF format.   Call us at 888-809-8385 to order by phone.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.