Fed Slashes Rates a Second Time

The central bank cut rates again but warned that they will be very cautious about further adjustments.

Economic News
2019年9月19日

At a highly anticipated policy meeting yesterday, the Federal Reserve decided to cut interest rates in the United States by 25 basis points. This is the second such decrease in 2019, the two decreases themselves being the first since the 2008 financial crisis.

Fed Chair Jerome Powell gave a press conference shortly after the meeting concluded. He said that the Federal Reserve remains confident in the strength of the US economy, but is implementing the rate cuts as a preventative measure. Powell is anticipating further damage to the economy because of slowing global growth - in large part due to Donald Trump’s aggressive trade policy and ongoing conflict with China.

Moreover, the Fed Chair reiterated that any further adjustments the central bank does to their policy will be based on current data. They do not plan a sequence of further rate decreases, unless growth stalls and demands it. These statements were likely directed at President Trump, who’s disrespected the independence of the Federal Reserve multiple times, urging them to start lowering interest rates, even when the data did not support such a policy.

Despite the fact that a lower interest rate usually lowers the national currency, the US dollar benefited from the news and appreciated versus both the EUR and the JPY.

Anna Sneider

Economic News

Market Overview, September 18

We are waiting for the Fed's decision today. Meanwhile, oil is decreasing in price.

Anna Sneider
2019年9月18日

Economic News

September 17: Digest Review

The situation in the Middle East is in the center of investors' attention. Oil is increasing in price due to the cut in oil supplies from Saudi Arabia.

Stanislav Litinskyi
2019年9月17日

Economic News

Johnson Challenged in Court over Prorogation

The UK Supreme Court is deciding whether Parliament should be recalled.

Anna Sneider
2019年9月17日