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Wed Sep 18, 2019, 02:08 PM

Fed Cuts Interest Rates by Another Quarter Point

Source: New York Times

WASHINGTON ó The Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday, its second move since late July, as it tries to insulate the economy against rising political risks and the fallout from a global slowdown.

A growing number of officials expect one more reduction this year, based on economic projections released following the meeting, in-line up with investor and economist expectations.

But the Fedís announcement on Wednesday is unlikely to appease President Trump, who has been pushing the central bank to cut interest rates to zero ó or even into negative territory. The Fedís policy interest rate is now set in a range of 1.75 to 2 percent, and not a single official sees it falling lower than 1.5 to 1.75 percent through the end of 2022.

While risks cloud the horizon, economic data still look O.K., creating a complicated backdrop for the central bank. Businesses are hiring and consumers are spending, but Mr. Trumpís ongoing trade war and prospects of an unruly Brexit have markets on edge. Meanwhile, inflation has been stuck below the Fedís target, giving officials room to lower rates without worrying about runaway price gains.

Read more: https://www.nytimes.com/2019/09/18/business/economy/fed-interest-rate-cut.html

12 replies, 1011 views

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Arrow 12 replies Author Time Post
Reply Fed Cuts Interest Rates by Another Quarter Point (Original post)
BumRushDaShow Sep 18 OP
redstatebluegirl Sep 18 #1
IronLionZion Sep 18 #3
pangaia Sep 18 #7
Yavin4 Sep 18 #11
IronLionZion Sep 18 #2
underpants Sep 18 #5
IronLionZion Sep 18 #6
Hassin Bin Sober Sep 18 #12
blue-wave Sep 18 #9
benld74 Sep 18 #10
The Liberal Lion Sep 18 #4
blue-wave Sep 18 #8

Response to BumRushDaShow (Original post)

Wed Sep 18, 2019, 02:13 PM

1. Why, if they keep lowering interest rates do credit

Card rates stay the same? Those rates impact everyday Americans in a serious way.

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Response to IronLionZion (Reply #3)

Wed Sep 18, 2019, 02:38 PM

7. So are my lowering T-Bill rates.

Dec 2018 I was getting about 2.75 on a 1 year T-Bill.
Now 1.89 and heading lower..



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Response to pangaia (Reply #7)

Wed Sep 18, 2019, 03:12 PM

11. Yep. My savings interest will fall as well.

Pushing savers into an over-valued market is no way to run a railroad.

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Response to BumRushDaShow (Original post)

Wed Sep 18, 2019, 02:14 PM

2. Yeah, the economy is so strong that it needs to be stimulated



In completely unrelated news, the NY Fed injected billions in stimulus into the overnight lending market for the second day in a row, since they're winning so much they're getting tired of winning.

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Response to IronLionZion (Reply #2)

Wed Sep 18, 2019, 02:26 PM

5. Hadn't heard about the overnight lending thing

Uh oh.

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Response to underpants (Reply #5)

Wed Sep 18, 2019, 03:25 PM

12. No worries. We can just print the money.

When it comes to bailing out Wall Street nobody asks ďHOW ARE WE GOING TO PAY FOR IT?Ē

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Response to IronLionZion (Reply #2)

Wed Sep 18, 2019, 02:49 PM

9. Oh wow, two days in a row, not good news

The overnight (repo or repurchase) thing played a role in the 2007-2008 collapse. Not again, please!

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Response to IronLionZion (Reply #2)

Wed Sep 18, 2019, 03:01 PM

10. Yup saw that last night

Slept like a baby
Woke up every hour screaming and crying

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Response to BumRushDaShow (Original post)

Wed Sep 18, 2019, 02:19 PM

4. too bad the new debt that's going to be created by this move

will not be going towards development and invention, but rather towards rising the debt load of consumers.

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Response to BumRushDaShow (Original post)

Wed Sep 18, 2019, 02:46 PM

8. OK, so what's next?

Negative rates and hyperinflation?

And where do they get that inflation is "stuck" below their target? Has anyone seen the price of homes lately? How about tuition costs or the inflated stock market? Groceries anyone, groceries? Yeah, I love those smaller portioned packages with the same or slightly higher prices. Oh that's right, that stuff doesn't matter, we don't factor it in the inflation rate. Nothing to see here, move on.

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