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Fed says it will do everything it can to support economy facing public-health crisis

by editor on 2020-04-29 19:35:23 | 0 comments

The Federal Reserve on Wednesday committed itself to use its full range of tools to help the U.S. economy which is facing considerable risks from the coronavirus pandemic. “The ongoing public health crisis will weigh heavily on economic activity, employment and inflation in the near term, and poses considerable risks to the economic outlook over the medium term,” the Fed said in a statement after two-day meeting. Click here:Follow live blog of Fed Chairman Powell’s press conference The Fed kept its benchmark interest rate in a range from 0 to 0...

Fed cuts interest rates by half percentage point in rare inter-meeting move

by editor on 2020-03-03 18:03:32 | 0 comments

The Federal Reserve, in a rare inter-meeting move, on Tuesday cut its benchmark interest rate to counter the threat to the economy from the coronavirus epidemic. In a statement, the Fed said it cut its fed funds target rate by a half percentage point to a range of 1%-1.25%. “The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity,” the statement said. At a press conference later, Fed Chairman Jerome Powell said officials saw the virus spreading and this represented a material change in the outlook for economic growth...

Fed Officials Saw Policy Appropriate 'For A Time' Amid Risks

by editor on 2020-02-25 08:56:32 | 0 comments

Federal Reserve officials viewed their current monetary policy as appropriate "for a time" while they remained on guard against domestic and global risks that could slow the longest U.S. expansion on record, according to Fed minutes released Wednesday in Washington. The Fed minutes showed a broad discussion as officials considered inflation ranges as a tool to achieve their 2% target, how to adapt policy to combat financial-stability risks, and how they would wind down ongoing repurchase agreement and Treasury-bill purchases...

Fed leaves key interest rate unchanged, keeping close eye on China’s coronavirus

by editor on 2020-01-29 20:42:30 | 0 comments

Stressing the U.S. economy is in good shape, the Federal Reserve on Wednesday left unchanged a key interest rate that influences borrowing costs, but it also said it’s closely monitoring whether the coronavirus spreads beyond China and harms the rest of the world. The central bank repeated its prior view that the economy is growing at a “moderate rate” while inflation remains low. Still, Fed Chairman Jerome Powell expressed some concern about the coronavirus and said senior officials are monitoring it closely...

Investors think the Fed is doing QE again. That's giving markets an artificial boost

by editor on 2019-12-20 12:04:56 | 0 comments

New York (CNN Business)The Federal Reserve has taken great pains to stress that its rescue of the overnight lending market is not a stealth version of quantitative easing. Wall Street isn't buying it, though. The September spike in overnight lending rates forced the Fed to take dramatic action to relieve the stress. The US central bank began aggressively pumping in billions of dollars a day and purchasing $60 billion of Treasury bills per month. Euphoria sweeps across Wall Street...

Read the FOMC’s December statement

by editor on 2019-12-11 20:21:31 | 0 comments

Information received since the Federal Open Market Committee met in October indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending has been rising at a strong pace, business fixed investment and exports remain weak. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent...

Another rate cut, and then what? The Fed isn’t making any promises

by editor on 2019-10-29 13:01:56 | 0 comments

The Federal Reserve is widely expected to lower its benchmark interest rate on Wednesday by 25 basis points to a range of 1.5%-1.75%, the third such cut in three months. The fed funds futures market puts the probability at 94%. That same financial futures market is attaching low odds (28%) to another cut in December, which seems to be the message —three and done, at least for now — conveyed by Fed officials, starting at the top with Fed Chair Jerome Powell. But that message is not uniform nor without inconsistencies...

Fed grew more worried about economy at September meeting, minutes show

by editor on 2019-10-09 19:01:42 | 0 comments

  Federal Reserve officials were more worried about the U.S. economy by the time they met in mid-September, according to minutes of the central bank’s meeting released Wednesday. “Participants generally judged that downside risks to the outlook for economic activity had increased somewhat since their July meeting, particularly those stemming from trade policy uncertainty and conditions abroad,” the minutes said. There was even talk about possible recession, with several Fed officials noting that the probability of a recession “had increased notably in recent months...

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