Policy makers had been widely expected to leave rates on hold after three straight cuts that helped calm concerns the economy could falter
Federal Reserve Chairman Jerome Powell reasserted the independence of the US central bank during White House talks with President Donald Trump on Monday, the Fed said. Powell attended the meeting, which comes amid an unprecedented campaign of public attacks on the central bank, at the invitation of the president, and was joined by Treasury Secretary Steven Mnuchin, the Fed said in a statement. In a tweet, Trump, who has lambasted Powell in harsh, personal terms over monetary policy, said the meeting was "good & cordial," adding that "everything was discussed" including interest rates, inflation, foreign exchange and the Fed's balance sheet policies. The Fed, however, said Powell's comments were consistent with last week's congressional testimony and did not concern "expectations for monetary policy," except to say it will depend entirely on new economic information. "Finally, Chair Powell said that he and his colleagues on the Federal Open Market Committee will set monetary ...
Fed officials reduced interest rates by a quarter-percentage point Wednesday and signaled a pause in further cuts unless the economic outlook changes materially
The Fed is scheduled to release its latest policy decision at 2 pm EDT (1800 GMT)
The spread in the yield curve has gainedabout 20 basis points since leaving negative territory, a recession indicator, in early September
US money-market interest rates surged Tuesday as cash reserves in the banking system remained out of balance with the volume of securities on dealer balance sheets
Moderate economic activity, weak business fixed investment and exports, and global uncertainties promoted the Fed to lower the key interest rates, a second since the recession of 2008
The policy statement and updated quarterly forecasts will be released at 2 pm in Washington and Chairman Jerome Powell will brief the press 30 minutes later
Pressure caused by this "supermassive black hole" would seep into the foreign exchange forward, cross-currency basis and Libor-OIS markets, according to the note
A big clue could come from Chairman Jerome Powell when he speaks on Friday at the Kansas City Fed's annual policy retreat in Jackson Hole, Wyoming
The Fed cut rates last month for the first time in a decade and signalled it was open to doing more amid slowing global growth
Trump, speaking to reporters at the White House, said a strong US dollar was hurting American manufacturers
Fed rate cuts in conjunction with additional fiscal stimulus could result in higher inflation - which could spook markets and lead to a nasty unwinding
Financial markets had widely expected the quarter-percentage-point rate cut, which lowered the US central bank's benchmark overnight lending rate to a target range of 2.00% to 2.25%
If the Fed does oblige, there could be a smart rally
The US Federal Reserve held interest rates steady on Wednesday and signaled little appetite to adjust them any time soon
It held its benchmark rate in a target between 2.25 per cent and 2.5 per cent, thus disappointing President Donald Trump, who earlier this week urged the Fed to cut the rate by 1 percentage point.
The Fed's relative predictive advantage versus private economists has declined in recent years as the higher quality and quantity of forecasters makes it harder for anyone, including Fed staff
"It will be interesting to hear the Fedspeak in the next few weeks," said Tannuzzo, deputy global head of fixed income
Why is the Federal Reserve being accused of fueling financial volatility and risking the country's economic well-being?