Federal Reserve gets ready for possible rate cuts


At the FOMC meeting
that concluded today we maintained our
policy interest rate but made some significant
changes to our statement. Since the beginning
of the year we have judged that our current
policy stance was broadly appropriate, and that we
should be patient in assessing the need for any changes. In light of increased
uncertainties and muted inflation pressures, we now
emphasise that the committee will closely monitor the
implications of incoming information for the economic
outlook and will act as appropriate to sustain the
expansion with a strong labour market and inflation near
its 2 per cent objective. So far this year the economy
has performed reasonably well with solid fundamentals
supporting continued growth and strong employment. Inflation has been running
somewhat below our objective, but we’ve expected it
to pick up supported by solid growth and
a strong job market. Along with this
favourable picture we’ve been mindful of some
ongoing crosscurrents, including trade developments and
concerns about global growth. So why not now? And I would say there was not
much support for cutting rates now, at this meeting. As you see, a number of
people wrote down rate cuts, but all of those,
but apparently, one felt that it would be better
to see more before moving. And I gave a couple of
reasons why that is the case. First, it’s just the fact that
some of these developments are so recent that we want to
see whether they’ll sustain. So we felt that
it would be better to get a clearer
picture of things and that we would,
in fact, learn a lot about these
developments in the near term. Ultimately, the question we’re
going to be asking ourselves is, are these risks
going to be continuing to weigh on the outlook? And we will act as
needed, including promptly if that’s appropriate,
and use our tools to sustain the expansion.

9 thoughts on “Federal Reserve gets ready for possible rate cuts”

  1. The fed needs to start taking active measures or we'll be at a disadvantage in the ongoing trade war
    Boasting about independent fed used to be cool when we used to be biggest economy on the planet with no one else close, no more

  2. If the target is to have ~2% inflation/year,how much will prices rise in 10-20 years?
    Bring on the printing machine for a guaranteed stagflation.

  3. The Federal Reserve is an ORGANIZED CRIME Syndicate!!!!!!!! Gold traded for Monopoly money.. The US Traitor System is NOT honoring, nor are they following the Laws of the Constitution "shall coin currency.."To coin money, regulate the value thereof, and of foreign coin.."// A Federal Reserve NOTE IS NOT MONEY!!!!!!! "..shall be drawn to the gallows, not walking or carried.."

  4. If the economy is so favorable, they should be increasing rates. Be honest the risks weighing on the economy is due to inconsistent political leadership.

  5. We're fucked. Republicans were retarded to cut taxes in a strong market. Especially since it had no impact on consumer spending which is why the economy is looking bleak. You either need to raise taxes or raise interest rates because we're well overdue for a downturn and we'll have no lever to pull to stimulate the economy other than a stimulus package. Is 30 trillion in debt our goal?

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