Fed cuts rates for 3rd straight time

DENVER CO- OCTOBER 8 Fed Chairman Jerome Powell is giving a luncheon keynote at the National Association of Business Economists in Embassy Suites by Hilton Denver Downtown Convention

Fed cuts interest rates for 3rd time this year

In lowering its policy rate by a quarter of a percentage point to a target range of between 1.50 per cent and 1.75 per cent, the United States central bank dropped a previous reference in its policy statement that it "will act as appropriate" to sustain the economic expansion - language that was considered a sign for future rate cuts.

The Fed's description of the USA economy on Wednesday remained largely unchanged, with labor markets said to be "strong", and economic activity "rising at a moderate rate". Favorite hiring and first rate wage increases must unruffled attend underpin individual spending within the impending months, keeping the financial system rising. "But uncertainties about this outlook remain". She expects the Fed to make another quarter-point cut at its last meeting of the year in December, but even then, she said, it's not likely to add much energy to the housing market or the broader economy.

After its two-day policy meeting, the US central bank made a decision to slash its target interest rate by 25 basis points to a range of 1.50 percent to 1.75 percent.

That used to be sooner than rising global dangers led the Fed to alter route and inaugurate easing credit score.

Business spending, however, fell by the most in almost four years. But by cutting rates the Fed is trying to counter uncertainties heightened by President Donald Trump's trade conflicts, a weaker global economy and a decline in US manufacturing. Fed Chairman Jerome H. Powell will give further guidance on the central bank's thinking at a news conference Wednesday afternoon.

Trump, in a departure from his White House predecessors who refrained from commenting on Fed policy, has made a habit of criticizing the US central bank for decisions he argues kept borrowing costs too high for too long.

Risks relating to global trade, as well as to the prospect that Britain would crash out of the European Union, have moved in a "positive direction" since the Fed's last meeting, Powell said, adding that the USA economy has remained resilient.

The major dispute at this week's meeting is whether the Fed has taken out ample insurance. He has repeatedly called on the bank to cut rates more aggressively, pointing to the low borrowing costs in other countries.

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

The European Central Bank announced a new stimulus program last month, cutting its benchmark interest rate to a record low of minus 0.5 percent.

Prior to the announcement, US President Donald Trump was active on Twitter once again and tried to pressure the Fed to aggressively slash rates.

"The Fed doesn't have a clue!"

U.S. President Donald Trump looks on as Jerome Powell, his nominee to become chairman of the U.S. Federal Reserve, walks to the podium at the White House on November 2, 2017. "But we are winning anyway!"

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