Fed Lowers Interest Rates By Quarter Point, Attentive To Risks To Both Sides Of Dual Mandate

RTTNews | 312 days ago
Fed Lowers Interest Rates By Quarter Point, Attentive To Risks To Both Sides Of Dual Mandate

(RTTNews) - After aggressively slashing interest rates by half a percentage point in September, the Federal Reserve on Thursday announced its widely expected decision to lower rates by another quarter point.

The Fed said it has decided to lower the target range for the federal funds rate by 25 basis points to 4.50 to 4.75 percent.

The central bank said its decision to continue lowering rates comes as labor market conditions have generally eased, while inflation continues to make progress towards its 2 percent objective.

However, the Fed said the risks to achieving its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run are roughly in balance.

"The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate," the Fed said.

In considering future adjustments to rates, the central bank said it will continue to carefully assess incoming data, the evolving outlook, and the balance of risks.

The Fed's next monetary policy meeting is scheduled for December 17-18, with CME Group's FedWatch Tool currently indicating a 70.0 percent chance of another quarter point rate cut but a 29.0 percent chance rates will be left unchanged.

read more
New York Manufacturing Index Unexpectedly Turns Negative In September

New York Manufacturing Index Unexpectedly Turns Negative In September

A report released by the Federal Reserve Bank of New York on Monday showed a substantial downturn by New York manufacturing activity in the month of September. The New York Fed said its general business conditions index plunged to a negative 8.7 in September from a positive 11.9 in August, with a negative reading indicating contraction. Economists had expected the index to fall to a positive 5.0.
RTTNews | 15h 24min ago
U.S. Consumer Sentiment Deteriorates Much More Than Expected In September

U.S. Consumer Sentiment Deteriorates Much More Than Expected In September

Preliminary data released by the University of Michigan on Friday showed consumer sentiment in the U.S. has deteriorated by much more than anticipated in the month of September. The University of Michigan said its consumer sentiment index fell to 55.4 in September from 58.2 in August. Economists had expected the index to edge down to 58.0.
RTTNews | 3 days ago
U.S. Jobless Claims Unexpectedly Climb To Nearly Four-Year High

U.S. Jobless Claims Unexpectedly Climb To Nearly Four-Year High

First-time claims for U.S. unemployment benefits unexpectedly increased in the week ended September 6th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims climbed to 263,000, an increase of 27,000 from the previous week's revised level of 236,000. Economists had expected jobless claims to edge down to 235,000.
RTTNews | 4 days ago
U.S. Consumer Prices Climb 0.4% In August, Slightly More Than Expected

U.S. Consumer Prices Climb 0.4% In August, Slightly More Than Expected

Following yesterday's report showing an unexpected dip by producer prices, the Labor Department released a separate report on Thursday showing U.S. consumer prices rose by slightly more than expected in the month of August. The Labor Department said its consumer price index climbed by 0.4 percent in August after inching up by 0.2 percent in July.
RTTNews | 4 days ago
U.S. Wholesale Inventories Inch Up 0.1% In July, Slightly Less Than Expected

U.S. Wholesale Inventories Inch Up 0.1% In July, Slightly Less Than Expected

Wholesale inventories in the U.S. increased slightly less than expected in the month of July, according to a report released by the Commerce Department on Wednesday. The Commerce Department said wholesale inventories crept up by 0.1 percent in July after rising by an upwardly revised 0.2 percent in June.
RTTNews | 5 days ago