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8/21/2019, 8:05 PM (Source: TeleTrader)
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Fed minutes: Cut 'mid-cycle adjustment,' no 'pre-set course'

Federal Open Market Committee (FOMC) officials said that the latest rate cut was a "mid-cycle adjustment" and that there was no "pre-set course" for future cuts, according to the minutes from the July 30-31 meeting released on Wednesday.

The meeting's participants also expressed their concern over the ongoing trade war between China and the United States, saying that the risks associated with trade uncertainty would remain "a persistent headwind for the outlook." They added that tariffs and generally slower economic conditions "could have significant negative effects on the US economy." However, officials otherwise saw economic growth as being generally solid, with data that had been "largely positive" and an economy that "had been resilient in the face of ongoing global developments." They also noted that trade was impacting the manufacturing and agriculture industries.

The FOMC's minutes come after US President Donald Trump criticized the Federal Reserve and its chairman Jerome Powell on several occasions earlier in the day. He first said that the pair were letting the US down before urging the Fed to lower borrowing costs and heed Germany's example. He then slammed the Fed for raising rates too quickly, said that they were "too fast, too furious" in doing so.

Breaking the News / DZ