They are closely watching the market for repurchase agreements — an obscure but critical corner of the financial world — as the end of the year approaches. Factory data remains weak, a fact Mr. Powell attributed in part to “sluggish” growth abroad.Mr. Trump spent the rest of the day proving him right.The president not only refuses to condemn right-wing violence — he actively defends it.No supply chain, no gains. That could be problematic for the president, who promised to coax growth to 3 percent or more, well above the level economists see as sustainable given current demographic and productivity trends. After a bunch of complaining from Trump, his newly installed Fed Chair Jay Powell announced a pause to rate hikes January. But fundamentally, the case for a rate cut is just a question of the basic logic of the inflation rate.Yet on another level, it’s a stunning development.
This all raises the question: If another recession occurs, what exactly is the plan?The Federal Reserve’s interest rate cut, explained A new poll shows rank-and-file Democrats finally realize the Supreme Court is importantThe GOP’s long-standing advantage in judicial politics is eroding fast.Biden accused Trump of fomenting violence. “If developments emerge that cause a material reassessment of our outlook, we would respond accordingly.”The Fed has now reduced its policy rate by a cumulative 0.75 percentage point this year, just as it did during two mid-business-cycle interest rate adjustments in the 1990s. Officials believed that strong consumer demand and a tight labor market would eventually push inflation up, and wanted to get ahead of that. The Federal Reserve on Wednesday cut interest rates by a quarter percentage point for the second time since July, as concerns grow about a potential global slowdown. Repo rates jumped at the end of 2018, as banks hoarded their reserve holdings to make their balance sheets look better for regulatory reasons. In the longer term, he added, the Fed is “open to ideas for modifying supervisory and regulatory practices in ways that don’t undermine safety and soundness.”Fed Keeps Interest Rates Steady and Projects Little Movement AheadFederal Reserve officials cut rates three times in 2019 to help protect the economy against slowing global growth and a trade war. The Federal Reserve’s final meeting of the year brought an end to rate cuts for 2019, and officials penciled in no rate changes next year.WASHINGTON — The Federal Reserve left interest rates unchanged at its final meeting of the year on Wednesday, and officials signaled an indefinite pause as America’s economy chugs through a record-long expansion on what appears to be sustainable footing. It does so primarily by changing borrowing costs to stoke or slow borrowing and spending. Inflation “seems to be settling in below 2 percent, so we really don’t see that risk,” Mr. Powell said. He has made a For now, Fed officials are turning their attention to more imminent concerns. Fed officials adjust interest rates to either speed or slow the economy in a quest to accomplish those targets.They have historically seen the twin tasks as a sort of trade-off. But the central bank — which operates independently of the White House and answers to Congress — appears disinclined to comply. Interest rate changes do not filter through the economy immediately, so officials want to see how their recent stimulus plays out in economic data. Officials penciled in no rate changes next year, according to their latest set of quarterly economic projections, and saw only one move, an increase, in 2021, followed by a second in 2022. But the central bank — which operates independently of the White House and answers to Congress — appears disinclined to comply. While tensions have shown recent signs of easing, how they will end is anyone’s guess.