Fed Cuts One-Quarter Point as Expected But Two Dissents for No Cuts

The Fed cut interest rates by 25 basis points but Esther George and Eric Rosengren dissented.

Please consider these snips from the Federal Reserve FOMC Statement issued today.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 2 to 2-1/4 percent. This action supports the Committee's view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain. As the Committee contemplates the future path of the target range for the federal funds rate, it will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

Statement Tracker

There was no noted discussion of a half-point debate but such a discussion likely took place.

The Wall Street Journal's Statement Tracker highlights the changes from the last meeting.

Fed Disappoints the Market

Comment of the Day

Trump has yet to Tweet. He will.

Mike "Mish" Shedlock

Comments (3)
No. 1-3

Mr. Market is NOT pleased.


Powell proves he is Trump's bitch. And the market is red. Maybe Powell should have cut 2 1/4 points?

JJ Johnson
JJ Johnson

Deficit Donald, busy sending hostage negotiators to Sweden, on the eve of night 2 of the CNN/Democrats version of a debate? Or whatever the hell they're doing...he'll be on this at 3 a.m.
I foresee a 15 tweet rant coming.
Get your Trump brand decoder rings out, the poor spelling and non-sensical thought process will begin shortly