The Fed Announces Third Rate Cut This Year

Some influential voices are calling for a pause in the stimulus so the Federal Reserve can assess global economic and trade developments which may improve

Some influential voices are calling for a pause in the stimulus so the Federal Reserve can assess global economic and trade developments which may improve

Added to a key change in the language of the statement issued by the policy-setting Federal Open Market Committee, the comments cement the view the Fed is for now unlikely to cut rates again in the final meeting of the year. "We have unlimited potential, only held back by the Federal Reserve", Trump said on Twitter.

Hours before Fed officials announced the quarter-point rate cut, the Commerce Department reported that the US economy expanded in the third quarter at an annual rate of 1.9%. Consequently, the decision to pause rate cuts accompanied by the assurance that rate hikes are not on the table - unless inflation rises notably - essentially signals the bank's next move is more likely to be lower than higher and the market's bullish reaction would suggest a majority of traders arrived at a similar conclusion. Pricing in fed funds futures implies investors don't fully expect another cut until well into 2020.

The Fed is also weighing the consequences of a decline in expectations for inflation.

The Fed's previous rate cuts in July and September have boosted home sales by lowering mortgage rates. "Fed was way too fast to raise, and way too slow to cut!"

As growth has softened, US President Donald Trump has sought to pin responsibility on the Fed.

It is not clear, though, how meaningful such an agreement might be, and Mr Trump has not dropped his threat to impose new tariffs on Chinese goods on December 15.

One other source of worldwide stress has been Brexit, which has additionally eased.

14 killed by security forces in Iraqi city of Kerbala
Karbala, as other cities in Iraq's predominantly southern region, has been gripped by a wave of deadly anti-government protests. Karbala's health department chief however said 122 people were injured, including 66 members of the security forces.

President Donald Trump has always been critical of the central bank. The European Union agreed Tuesday to delay the deadline for Britain's exit from the replace bloc to january 31 from October 31.

The governors are nominated by the USA president, confirmed by the Senate, and serve 14-year terms. The remaining four votes are rotated annually among the other 11 regional Fed presidents in a design that is meant to balance the views of those who are politically appointed with those more closely tied into local economies.

Americans gash attend on spending at retail outlets and restaurants last month, a worrisome tag because individual spending is the main source of business growth.

Many companies have said they have postponed major investment projects because of uncertainties stemming from the U.S. The tit-for-tat tariffs between the US and China, the arena's two largest economies, like additionally reduced USA exports.

Personal consumption expenditures, which account for more than two thirds of the overall economy, grew at an annual rate of 2.9 percent in the third quarter, lower than the 4.6 percent growth pace in the second quarter. "Job gains have been solid, on average, in recent months, and the unemployment rate has remained low", the statement said.

The housing market has additionally improved, after slumping in 2018, thanks in allotment to the Fed's rate cuts.

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