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.
2020-04-10 11:33:00 Friday ET
Elon Musk envisions a bold fantastic future with his professional trifecta of lean startup enterprises SolarCity, SpaceX, and Tesla. Ashlee Vance (2015)
2019-05-23 10:33:00 Thursday ET
Berkeley professor and economist Barry Eichengreen reconciles the nominal and real interest rates to argue in favor of greater fiscal deficits. French econo
2018-01-10 08:40:00 Wednesday ET
President Trump considers imposing retaliatory economic sanctions on Chinese products and services in direct response to China's theft and infringement
2025-06-20 08:27:00 Friday ET
President Trump poses new threats to Fed Chair monetary policy independence again. We describe, discuss, and delve into the mainstream reasons, conc
2024-02-04 08:28:00 Sunday ET
Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2024. Our proprietary alpha investment model outperforms the ma
2019-01-05 11:39:00 Saturday ET
Reuters polls show that most Americans blame President Trump for the recent U.S. government shutdown. President Trump remains adamant about having to shut d