10/30, 7:00 PM (Source: TeleTrader)
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Fed cuts rates for third time in 2019

The US Federal Reserve's Federal Open Market Committee (FOMC) announced on Wednesday that it decided to lower the target range for the federal funds rate by 25 basis points to the 1.50%-1.75% range "in light of the implications of global developments for the economic outlook as well as muted inflation pressures." Eight out of 10 FOMC members backed the rate cut, while Kanas City Fed President Esther George and Boston Fed President Eric Rosengren favored keeping rates unchanged.

The central bank noted that fixed investment and exports remained weak and that inflation is running below 2% on a 12-month basis. According to the FOMC, today's action "supports the Committee's view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2% objective are the most likely outcomes, but uncertainties about this outlook remain."

The statement added the Fed's future monetary policy decisions will depend on its assessment of "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."

Breaking the News / NP