Cocoa: Korean Messenger launches Klip
From our correspondent in Washington In spite of the opposition of three of the ten voting members of its monetary committee, the federal Reserve again reduc

The Fed lowers its interest rate by 0.25%

From our correspondent in Washington In spite of the opposition of three of the ten voting members of its monetary committee, the federal Reserve again reduc

The Fed lowers its interest rate by 0.25%

From our correspondent in Washington

In spite of the opposition of three of the ten voting members of its monetary committee, the federal Reserve again reduced its key interest rate. The decrease of 0, 25% of the Fed funds rate" door from 1, 75%, and 2% the range of rates at which the Fed lets banks lend liquidity in the very short term.

" ALSO READ - Declining Fed funds rate: any understanding of this decision to the global effects

Jay Powell, the boss of central bank of the United States, recognizes the strength of the employment and the recent increase in household expenditure. But he justifies his decision by citing the weakness of investment and exports.

Two of the three committee members who will vote against the lowering of rates, wanted it to remain unchanged. But the third, James Bullard, President of the Fed of St Louis, called 0, a 5% decrease.

"insurance"

Already 0, 25%, of the previous reduction of the Fed funds rate" at the end of July had been presented as an "insurance policy" against the risk of slowing down excessive conditions. Since then, job creation, slow down a little, while the manufacturing sector shows some signs of contraction, and that the investment is misdirected. We see in these trends the direct effects of the trade war, particularly with China. But the risks of Brexit and the weakness of European growth, deter also the american companies to invest, " says Jay Powell.

" ALSO READ - Recession in the United States: understanding the risk that is of concern to the world

On the other hand, driven by full employment, consumption, which represents more than two-thirds of GDP, recovered in the course of the summer. If the growth in annual rate during the third quarter is estimated to be nearly 2%, i.e. as much as in the second quarter, but less than 3, 1% from January to march.

For the moment, the increases of customs duties on imports of chinese goods have had a limited effect on consumption because they have mainly targeted the intermediate goods. However, the new sanctions announced in September will reach to consumer products, which will represent a drain of purchasing power for americans.

Worried about the slowdown in Europe and China, and as inflation is near the target of 2% set by the Fed, Jay Powell and his colleagues to reduce again the cost of money, but the likelihood of future rate cuts appears to be decreasing.

Publish Date : 19 Eylül 2019 Perşembe 00:00

Breaking News Headlines

New Methods in Forex Trading
New Methods in Forex Trading
How to Follow the “3 Hobbies” Principle for Poker Players
How to Follow the “3 Hobbies” Principle for Poker Players
One Way Backlink from News Sites for Forex Companies
One Way Backlink from News Sites for Forex Companies
Forex Brokers you can Deposit via Paypal
Forex Brokers you can Deposit via Paypal
What time do they close the bars, pubs and clubs in each autonomous community?
What time do they close the bars, pubs and clubs in each autonomous community?
One out of every five self-employed have at least one worker in their charge
One out of every five self-employed have at least one worker in their charge
19% of british companies that cut their earnings forecasts cited Brexit
19% of british companies that cut their earnings forecasts cited Brexit
Employment estimated that only one out of every three contracts to support entrepreneurs to survive in the present
Employment estimated that only one out of every three contracts to support entrepreneurs to survive in the present
The aircraft deliveries of Boeing recorded in July, its worst level since November 2008 for the 737 MAX
The aircraft deliveries of Boeing recorded in July, its worst level since November 2008 for the 737 MAX
In spite of the crisis in the case of Media Markt & Saturn: mother-to-group makes large profit
In spite of the crisis in the case of Media Markt & Saturn: mother-to-group makes large profit
Tug-of-war to Metro: trade group rejects billion Takeover
Tug-of-war to Metro: trade group rejects billion Takeover
Bitcoin price under $ 10,000: crypto-Scam to blame?
Bitcoin price under $ 10,000: crypto-Scam to blame?
Pages
NEWS ARCHIVES