Fed holds rates steady, expects moderate economic growth next year

Daniel Fowler
December 12, 2019

"The Committee judges the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation near the. symmetric 2 percent objective", the Fed said in a policy statement after the end of a two-day meeting.

The decision, though widely expected, is unlikely to please President Donald Trump who has repeatedly berated the Fed and called on its Chairman Jerome Powell to slash rates to zero to supercharge the United States economy, which Trump says is at a disadvantage against foreign economies with lower rates. With no change to rates, Powell could also be closely watched for any updated commentary on the Fed balance sheet, since worries are building over a possible year-end flare-up in the repo markets. This was arguably a non-controversial meeting, with the Fed having telegraphed that it would require some significant deterioration in the economy or exogenous risk (such as trade wars) to warrant further cuts. But amid trade concerns, sluggish global growth, and tepid inflationary pressures, the Fed ended up cutting interest rates in three consecutive meetings.

Retail inflation for October stood at 4.62 percent in October.

Food Labels Should Also Tell The Exercise Needed To Burn Calories
Stretch that figure out over many years and it could result in a dramatic reduction in obesity-related health ailments and deaths. The work done by the team from Loughborough University sought to collect all that data and reach a larger conclusion.

Following a meeting on Thursday to review the Fed's decision, the Bank of Korea's Senior Deputy Governor Yoon Myun-shik said market interest rates fell, Wall Street went up, and the US dollar weakened after the Fed's move. Meanwhile, the latest ISM business surveys softened again while the external environment remains weak with German industrial numbers and Asian trade data reinforcing this message.

In response. the Bank of Korea says. the Fed's decision is in line with market expectations. They pointed to a historic low in the unemployment rate and a rise in household spending.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER