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.
2018-07-01 08:34:00 Sunday ET
Are China and Russia etc gonna dethrone the petrodollar? Over the years, China, Russia, France, Germany, and Japan have made numerous attempts to use their
2019-06-27 10:39:00 Thursday ET
Berkeley tax economists Gabriel Zucman and Emmanuel Saez find fresh insights into wealth inequality in America. Their latest estimates show that the top 0.1
2017-12-17 11:41:00 Sunday ET
Warren Buffett points out that it is important to invest in oneself. Learning about oneself empowers him or her to lead a meaningful life. This valuable inv
2018-01-23 06:38:00 Tuesday ET
Amazon, Berkshire Hathaway, and JPMorgan Chase establish a new company to reduce U.S. employee health care costs in negotiations with drugmakers, doctors, a
2025-05-21 04:27:10 Wednesday ET
Carol Dweck describes, discusses, and delves into the scientific reasons why the growth mindset often helps motivate individuals, teams, and managers to acc
2023-07-28 11:28:00 Friday ET
Lucian Bebchuk and Jesse Fried critique that executive pay often cannot help explain the stock return and operational performance of most U.S. public corpor