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Can you see that in the distance? It's a Fed rate cut coming....for now Fed leaves rates unchanged

Jun 19, 2019

 

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  • The Federal Reserve left rates unchanged, as expected, but signaled a willingness to cut
  • The Fed said uncertainties have increased while 8 of 17 members expect a rate cut in 2019
  • The Fed has not cut interest rates in over 10 years
  • The Fed signaled its willingness to cut by removing “patient” from its statement mentioning borrowing costs
  • In today's vote, St. Louis Fed President James Bullard dissented and voted to cut rates now
  • The Fed revised its inflation forecast to an even bigger miss of its 2% inflation target than before; the Fed now expects CPI of 1.5%, down from 1.8%
  • Economic activity was described as moderate, down from solid in the last statement

 

Some quotes from the official Fed statement:

  • “uncertainties about the outlook have increased”
  • “In light of these uncertainties and muted inflation pressures, the committee will closely monitor the implications of incoming information for the economic outlook and will act as 
  • “growth of household spending appears to have picked up from a year earlier”
  • “indicators of business fixed investment have been soft”
     

 

 

 

 

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