Fri, Jun 21, 2019 - Page 10 News List

Case building for US interest rate cuts

‘PREPARED TO MOVE’:The US Fed chairman said that seven weeks ago the economy looked as though it was in a ‘good place,’ but trade tensions have weighed on outlook

Reuters, WASHINGTON

They also expect to miss their 2 percent inflation target next year, a blow for a central bank that has missed that goal for years.

Policymakers “expressed concerns” about the pace of inflation’s return to 2 percent, Powell said, adding that wages are rising, “but not at a pace that would provide much upward impetus” to inflation.

The long-run federal funds rate, a barometer for the state of the economy over the long term, was cut to 2.5 percent from 2.8 percent.

St Louis Fed President James Bullard, who had argued that rates should be cut, dissented in Wednesday’s policy decision.

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