Fed cuts interest rates for third time in 2019
The Federal Open Market Committee announced a 0.25 percent cut in the target federal funds rate on Oct. 30, reflecting “global developments for the economic outlook as well as muted inflation pressures.” The target range for the federal funds rate is now 1.5 percent to 1.75 percent, following the third interest rate cut this year.
“We took this step to help keep the U.S. economy strong in the face of global developments, and to provide some insurance against ongoing risks,” said chairman Jerome Powell in a press conference following the announcement. He noted that the U.S. economy is in its 11th year of expansion and the baseline outlook “remains favorable.”
Inflation concerns remain muted. The Consumer Price Index, which measures the change in prices paid by consumers and reflects consumer inflation, was unchanged in September on a seasonally adjusted basis and increased 1.7 percent over the past 12 months. In addition, wage growth, as measured by the Bure