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Don961 » October 11th, 2019
The US central bank is increasingly divided over the next step in monetary policy
- 6 Hours Have Passed
The latest meeting of the US Federal Reserve showed that most policymakers in the Fed supported the need for a rate cut at their last meeting in September, but remained increasingly divided over the future course of monetary policy.
According to the minutes of the meeting issued yesterday, the Board also agreed that a discussion should be held soon to decide on increasing the size of the central bank budget following the turmoil in the short-term money markets.
At their meeting on Sept. 17-18, policymakers decided by a 7-3 vote to cut the benchmark interest rate by a quarter percentage point to between 1.75 and 2 percent.
"Most participants felt that a 25 basis point (quarter percentage point) reduction in the federal funds target price target would be appropriate," the Fed said in the minutes.
But the limits of consensus did not exceed that. While everyone is increasingly concerned about the risks associated with the Trump administration's escalating trade wars, particularly with China, as well as slowing global growth and other developments such as the Brexit, they disagree on what that means for the US economy.
A number of policymakers felt that it was appropriate for the Fed to cut interest rates now to ward off risk, while others said the current outlook for the US economy does not justify a rate cut.
"They argued that the main uncertainties are unlikely to be resolved soon," the report said. Moreover, not believing that these uncertainties could derail growth, they saw no need for further monetary easing at the moment. ”
A number of policymakers pointed out that statistical models predict that the possibility of a recession in the medium term has increased in recent months, and some warned that the labor market in early 2019 may be less robust than previous estimates, according to preliminary reviews of the Bureau of Labor Statistics.
The Fed has cut borrowing costs twice this year after raising interest rates nine times since 2015. Seven of the 17 policymakers said last month they expect to cut rates again this year. Five said they saw no need for further cuts, and another five expected a rate hike by the end of 2019.
Investors widely expected another rate cut at the next meeting on October 29-30.
Reuters link
Source: Dinar Recaps
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
Don961 » October 11th, 2019
The US central bank is increasingly divided over the next step in monetary policy
- 6 Hours Have Passed
The latest meeting of the US Federal Reserve showed that most policymakers in the Fed supported the need for a rate cut at their last meeting in September, but remained increasingly divided over the future course of monetary policy.
According to the minutes of the meeting issued yesterday, the Board also agreed that a discussion should be held soon to decide on increasing the size of the central bank budget following the turmoil in the short-term money markets.
At their meeting on Sept. 17-18, policymakers decided by a 7-3 vote to cut the benchmark interest rate by a quarter percentage point to between 1.75 and 2 percent.
"Most participants felt that a 25 basis point (quarter percentage point) reduction in the federal funds target price target would be appropriate," the Fed said in the minutes.
But the limits of consensus did not exceed that. While everyone is increasingly concerned about the risks associated with the Trump administration's escalating trade wars, particularly with China, as well as slowing global growth and other developments such as the Brexit, they disagree on what that means for the US economy.
A number of policymakers felt that it was appropriate for the Fed to cut interest rates now to ward off risk, while others said the current outlook for the US economy does not justify a rate cut.
"They argued that the main uncertainties are unlikely to be resolved soon," the report said. Moreover, not believing that these uncertainties could derail growth, they saw no need for further monetary easing at the moment. ”
A number of policymakers pointed out that statistical models predict that the possibility of a recession in the medium term has increased in recent months, and some warned that the labor market in early 2019 may be less robust than previous estimates, according to preliminary reviews of the Bureau of Labor Statistics.
The Fed has cut borrowing costs twice this year after raising interest rates nine times since 2015. Seven of the 17 policymakers said last month they expect to cut rates again this year. Five said they saw no need for further cuts, and another five expected a rate hike by the end of 2019.
Investors widely expected another rate cut at the next meeting on October 29-30.
Reuters link
Source: Dinar Recaps
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
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