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The Federal Reserve as expected cut rates to 2.00 -.25% after a two day meeting on Wednesday with Jerome Powell as Chairman. Markets had priced in a 97% chance of the Change. Says Labor market remains strong with moderate economy.

 Fed Boardroom

Federal Reserve October FOMC Meeting 

Federal Reserve Announcement Wed 30 October 2019 14:00:00 ET

FOMC Benchmark Interest Rate Lowered 25bps; Target Range To 1.50-200%

Interest Rate On Excess Reserves -.25% To 1.55% 

Highlights

  • Uncertainties remain, will assess appropriate rate path
  • George and Rosengren wanted no change
  • Change of wording in statement says it will monitor incoming info "as it assesses the appropriate path" for the target range
  • Sets IOER at 1.55%, as expected
  • Indicators of business fixed investment remains weak vs 'business fixed investment has been soft' prior
  • Repeats that core and headline inflation running below 2%
  • Says that market-based measures of inflation remain low vs 'have declined'
  • Says 'uncertainties about this outlook remain' vs 'uncertainties about the outlook have increase
  • Economic activity has been rising at a moderate rate, the same as prior
  • Repeats that job gains have been solid, on average, in recent months, and the unemployment rate has remained low
  • Household spending has been rising at a strong pace vs 'appears to have picked up'

FOMC Statement and Press Conference October 30, 2019 14:30 ET

October 30, 2019 Federal Reserve issues FOMC statement For release at 2:00 p.m.EDT

Information received since the Federal Open Market Committee met in September 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. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 1-1/2 to 1-3/4 percent. This action supports the Committee's view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain. The Committee will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; James Bullard; Richard H. Clarida; Charles L. Evans; and Randal K. Quarles. Voting against this action were: Esther L. George and Eric S. Rosengren, who preferred at this meeting to maintain the target range at 1-3/4 percent to 2 percent. Implementation Note issued October 30, 2019

Federal Reserve August FOMC Statement Changes via RANsquawk @RANsquawk

 

 

 

 

 

Source: Federal Reserve

From the TradersCommunity Research Des

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