2019-09-07 17:37:00 Sat ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
Federal Reserve Chair Jerome Powell announces the monetary policy decision to lower the federal funds rate by a quarter point to 2%-2.25%. This interest rate cut is the first rate reduction since December 2008. For most American investors, the rate cut can mean a reprieve in the average cost of capital. Powell reiterates that this interest rate reduction cannot be misconstrued as a one-time rate cut or the first in a series. Stock market analysts may view Federal Reserve monetary policy independence in a negative light as the FOMC approves the interest rate cut under pressure from a vocal president. The interest rate cut sends a shiver through global markets, and the intricate nuances of Powell language reverberate in response to persistently low inflation in America.
Powell faces direct and confrontational questions on why a rate cut is necessary when the U.S. economy remains robust with high employment. The current U.S. inflation rate hovers in the reasonable range of 1.5%-1.7% below the 2% monetary policy target, and the current U.S. unemployment rate persists at 3.7% per annum. The recent interest rate cut may inadvertently limit the Federal Reserve monetary policy adjustments in response to a future financial downturn.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-08-14 10:31:00 Wednesday ET
Netflix suffers its first major loss of U.S. subscribers due to the recent price hikes. The company adds only 2.7 million new subscribers in 2019Q2 in stark
2025-08-09 11:31:00 Saturday ET
Wharton e-commerce entrepreneurship professor Dr Karl Ulrich explains that many top-notch universities now provide massive open online courses (MOOCs) for m
2019-03-29 12:28:00 Friday ET
Federal Reserve Chair Jerome Powell answers CBS News 60 Minutes questions about the recent U.S. economic outlook and interest rate cycle. Powell views the c
2019-08-04 08:26:00 Sunday ET
U.S. and Chinese trade negotiators hold constructive phone talks after Presidents Trump and Xi exchange reconciliatory gestures at the G20 summit in Japan.
2018-05-21 07:39:00 Monday ET
Dodd-Frank rollback raises the asset threshold for systemically important financial institutions (SIFIs) from $50 billion to $250 billion. This legislative
2018-10-15 09:33:00 Monday ET
Several pharmaceutical companies now switch their primary focus from generic prescription drugs to medical specialties such as cardiovascular medications an