Fed slashes interest rates by a half point, an aggressive start to its first easing campaign in four years

Fed slashes interest rates by a half point, an aggressive start to its first easing campaign in four years

From cnbc.com

The Federal Reserve on Wednesday enacted its first interest rate cut since the early days of the Covid pandemic, slicing half a percentage point off benchmark rates in an effort to head off a slowdown in the labor market. With both the jobs picture and inflation softening, the central bank’s Federal Open Market Committee chose to lower its key overnight borrowing rate by a half percentage point, or 50 basis points, affirming market expectations that had recently shifted from an outlook for a cut half that size. Outside of the emergency rate reductions during Covid, the last time the FOMC cut by half a point was in ... (full story)

3.00% rate by end of 2025

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Fed's Powell: Housing inflation is one piece that is dragging a bit
From @financialjuice|Sep 18, 2024|10 comments
post: FED'S POWELL: HOUSING INFLATION IS ONE PIECE THAT IS DRAGGING A BIT. post: FED'S POWELL: MARKET RENTS ARE DOING WHAT WE WANT THEM TO DO, BUT THEY ARE NOT COMING DOWN AS MUCH AS EXPECTED.
Fed's Powell: Retail sales and Q2 GDP indicate an economy growing at a solid pace, which will also...
From @financialjuice|Sep 18, 2024|1 comment
post: FED'S POWELL: RETAIL SALES AND Q2 GDP INDICATE AN ECONOMY GROWING AT A SOLID PACE, WHICH WILL ALSO SUPPORT LABOR MARKET. post: FED'S POWELL: WE DON'T NEED TO SEE FURTHER LOOSENING OF LABOR MARKET TO GET INFLATION DOWN TO 2%. post: POWELL: IMMIGRATION IS ONE OF THE THINGS THAT HAS ALLOWED UNEMPLOYMENT RATE TO RISE post: Powell: "It feels to me the neutral rate is probably significantly higher than it was back then" [before the pandemic]. post: FED'S POWELL: WE ARE NOT DECLARING VICTORY ON INFLATION.
Fed's Powell: There was broad support for a 50 bps cut today
From @financialjuice|Sep 18, 2024
post: FED'S POWELL: THERE WAS BROAD SUPPORT FOR A 50 BPS CUT TODAY. post: POWELL: WE DON'T THINK WE ARE BEHIND THE CURVE post: POWELL: NO ONE SHOULD LOOK AT TODAY AND THINK THIS IS THE NEW PACE post: FED'S POWELL: WE ARE NOT THINKING ABOUT STOPPING RUNOFF BECAUSE OF THIS AT ALL. post: FED'S POWELL: CLEARLY LABOR MARKET CONDITIONS HAVE COOLED, BUT LEVEL OF CONDITIONS IS PRETTY CLOSE TO MAX EMPLOYMENT.

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US Treasury International Capital Data for July
From home.treasury.gov|Sep 18, 2024
The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for July 2024. The next release, which will report on data for August 2024, is ...
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From bnnbloomberg.ca|Sep 18, 2024
Traders are ramping up their bets on the pace of Federal Reserve’s future easing after officials reduced their key interest rate by half a point, sending short-maturity Treasuries ...
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From thehill.com|Sep 18, 2024|4 comments
Michelle Bowman, a governor on the Federal Reserve Board, became the first Fed official since 2005 to vote against the central bank’s interest rate decision when she dissented ...

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