According to economist Dan North, credit card issuers will be affected by the drop in funds rate because their markets are affected by economic factors. Lower home prices leave consumers with less home equity to use for spending or to pay off card debt which could drive transactions on credit...
With these conditions, it is almost impossible to create a solid and positive credit impulse from rate cuts when the economy loses the placebo effect of debt accumulation. It is difficult to believe that the productive sector is going to react to rate cuts in the middle of an earnings and ...
nothing as severe as the2007–2009 financial crisis. Moreover, there's comfort in knowing the Fed has already started cutting rates. If the economy does visibly weaken, these rate cuts will eventually help. Though it usually takes at least six months for the effects to kick in. ...
aFed rate cuts and government spending, or both, are often necessary to recharge the economy. Eventually, the economy hits rock bottom, known as the trough, and gradually starts to recover. The business cycle then resumes with a new expansion phase. 联邦机关减息和政府开支或者两个,经常是必要...
Powell noted that the 50-basis-point rate cut should not be viewed as the Fed's new pace of rate cuts. It will carefully assess each meeting and make new decisions based on the circumstances. "We are not on any preset course," he said. The newly released dot plot -- where each Fede...
Republican presidential nominee Donald Trump offered a downbeat take on the rate cut of half a percentage point, while also suggesting the Fed might be getting political ahead of November ’ s elections. The former president said: "I guess it shows the economy is very bad to cut it by that...
monetary bazooka," referring to a laundry list of aggressive stimulus measures the country's central bank took to buoy the economy. That included interest-rate cuts on existing mortgages, a lower required minimum downpayment (to 15%), reduced reserve requirement ratios for commercial banks, and ...
Dean Baker, a senior economist at the Center for Economic and Policy Research, told Xinhua that he expects the Fed to be "very cautious" over rate cuts next year. "The economy seems to be somewhat stronger than they had expected. This means there is less need to have rate cuts to susta...
The euro-to-dollar exchange rate has been under pressure over the past weeks, weighed down by a strong dollar amid mixed Fed rate cut prospects and worries over a protracted slowdown and political uncertainties in the euro zone. The exchange rate retreated to a three-week low of 1.1065 on ...
Therefore, as we move into a world where global central banks are beginning to dial back policy restraint through interest rate cuts, this should ultimately support growth in the global economy. SFC Markets and Finance: What impact will this have on the Fed's policy?