Global| Oct 30 2019FOMC Lowers Interest Rates Again
by:Tom Moeller
|in:Economy in Brief
Summary
The Federal Reserve lowered the target for the Fed Funds rate by 25 basis points to a range of 1.50% to 1.75% at today's FOMC meeting. It was the third cut this year from a top range of 2.25% to 2.50%. The move reduced the rate to its [...]
The Federal Reserve lowered the target for the Fed Funds rate by 25 basis points to a range of 1.50% to 1.75% at today's FOMC meeting. It was the third cut this year from a top range of 2.25% to 2.50%. The move reduced the rate to its lowest level since June of last year. The action was expected in the Action Economics Forecast Survey, which does not expect further action this year.
In the statement which accompanied today's move, there was an indication that future action would require unforeseen developments. "The committee will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path" of future action.
Other comments were little changed from those which accompanied earlier meetings, including that consumer spending remained strong and that business investment and exports were weak. Price inflation was expected to remain near two percent. Financial and international developments will also play a role in determining future action, according to FOMC minutes.
The press release for today's meeting can be found here.
Eight members of the FOMC voted to lower the Fed funds rate target while two voted for no change.
| Current | Last | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate Target | 1.50%-1.75% | 1.75%-2.00% | 1.82% | 1.00% | 0.40% | 0.13 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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