The Federal Reserve announced a half-percentage-point cut in benchmark rates yesterday, at the higher end of market expectations. The decision marks the central bank’s first rate cut since the early days of the COVID-19 pandemic in 2020. See how the Fed works here (w/video).
The decision to lower rates to a range of 4.75% to 5% comes amid a recent hiring slowdown, though last month’s 4.2% unemployment rate remains relatively low by historical standards (see graphs). The Fed’s decision also followed last week’s consumer price index report, which showed inflation slowing to 2.5% year-over-year in August, approaching the Fed’s 2% target.
Despite the announcement of a higher-than-expected cut, markets closed lower on yesterday’s news (S&P 500 -0.3%, Dow -0.3%, Nasdaq -0.3%). Traders appeared concerned the decision indicated the Federal Reserve sees risk of an elevated economic downturn.
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@PrettyPretty
Blaming Trump is the”trend of the day,” but that’s getting quite old these days. Go vote for Ms. Kamala and just watch what will happen happen to the national debt. It will make what the Biden Administration did to it look like they weren’t even trying to see how much they could give away to their friends and the common-folk.
If debt makes inflation go higher, then the debt created and left by trump is to blame for the inflation that popped up right after he was replaced, right? He spent like a sailor (trump signed my stimulus checks, don’t know about yours) and significantly cut revenue by cutting taxes (trump cut mine temporarily and cut it permanently for corporations.) Do I have that right? just trying to keep up.
To clarify the reality of this illegal in-kind donation to Cartel Kamala’s campaign…
1. The average interest rate on credit cards will go from 26% to 24.5%… thank you sir, may I have another.
2. The average mortgage interest rate will drop from 7% to 6%, on a home that costs twice as much as it did pre-Harris/Biden… thank you sir, may I have another.
3. The DC R&D Uni-Party of Drunken Sailors will use this as a “all clear” to spend even more money that we don’t have and drive our debt even higher, which will result in continued high inflation.
… thank you sir, may I have another