Fed goes ahead with quarter-point cut

Sep. 18, 2019 2:13 PM ETBy: Liz Kiesche, SA News Editor196 Comments
  • As widely expected, the Fed trims the federal funds target rate by 25 basis points to 1.75%-2.00%, its second rate cut in a row.
  • Still sees sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2% objective are the most likely outcomes, though uncertainties to the outlook remain.
  • All but three of the FOMC voters voted for the action. Dissenting were James Bullard, who preferred to cut rates by 50 basis points and Esther George and Eric Rosengren, who preferred to keep the target range unchanged.
  • Stocks appear to be heading down. The Nasdaq falls 0.7%, the S&P 500 sinks 0.5%, and the Dow declines 0.4%.
  • The committee still considers the labor market strong and economic activity "rising at a moderate rate." They do note that business fixed investment and exports have weakened since the July meeting.

Recommended For You

Comments (196)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.