Jefferies is surprised by the size of the US Fed rate cut. The decision to cut by 50 bps could be politically driven. Adds interest rate in US should be 3-3.5% by next year. Barclays Fed will not see sharper rate cuts, commodities have already priced in the upcoming rate cuts well. ...
Already, mortgage rates have slid ahead of the September 18 rate decision, partly due to anticipation of a cut as well as weaker economic data. The 30-year fixed-rate mortgage currently sits at about 6.29%, the lowest rate since February 2023, according to the Mortgage Bankers Association. ...
Fed Interest Rate Decision is made eight times a year during the vote among the members of the Federal Open Market Committee (FOMC). The US Federal Reserve determines short-term interest rates, which it will charge on credit and loans to commercial banks. ...
The Federal Reserve lowered its benchmark rate by a quarter point Wednesday as an insurance policy not against what's wrong with the economy now, but what could go wrong in the future. It was the first rate cut by the central bank in more than a decade. Amid President Donald Trump's i...
A lower Fed rate would likely lead, over time, to reduced borrowing rates for households and businesses. Some economists now predict that the central bank’s first rate cut won’t come until July or even later. That expectation has fueled speculation on Wall Street that the Fed mig...
Fed stuns markets with rate cut; Surprise decision arranged over early-morning conference callIan McConnell
The unemployment rate, while still low at 4.2%, has risen nearly a full percentage point in the past two years. Concern over rising unemployment contributed to the Fed’s decision in September to cut its key rate by a larger-than-usual half point. ...
"Note that the issue of dovish market expectations is no trivial matter. Although hawkish voices will dissent on a rate cut decision, more moderate policy makers will likely view market expectations as reason to side with the doves," he argued. ...
Outside of the emergency rate reductions during Covid, the last time the FOMC cut by half a point was in 2008 during the global financial crisis. The decision lowers the federal funds rate to a range between 4.75%-5%. While the rate sets short-term borrowing costs for banks,it spills ov...
Schwarz said the newly announced rate cut can be characterized "as primarily an insurance move" against potential downside risks to the economy, while noting that the rate hike last December could be characterized as "precautionary tightening," insuring against risks at that time to "overly robust...