Federal Reserve Chairman Jerome Powell announced on Wednesday that interest rates will remain unchanged and could stay there for some time to come: the Fed is predicting no other rate changes on the horizon in 2020, signaling that 2019’s three rate cuts brought the U.S. to a stable place.
Today’s announcement that the rate will remain at the 1.5 percent to 1.75 percent range marks the Fed’s final monetary policy decision for 2019.
The Fed cut rates this year by a quarter of a point three times since July. Powell said on Wednesday the earlier cuts helped keep the U.S. economy on track and assuming incoming data holds up, the current policy stance will “likely” remain appropriate.
“It’s been very challenging to get inflation to be at target … But I think we’re using our tools as best we can to meet that challenge.”
Previous interest cuts were seen as protecting the U.S. economy from negative fallout from the U.S. trade war with China and slow global growth. Powell signaled the cuts were successful and said: “our economic outlook remains a favorable one despite global developments and ongoing risks.”
When asked by a reporter why the Fed has dropped its previous caveat from October that noted “uncertainties about this outlook remain,” Powell responded “we’ve put now in place policies that we think are appropriate to address [global developments and muted inflation pressures.]”
Looking forward, Powell indicated that with a strong household sector, the Fed expects economic growth to continue and said if the proposed USMCA deal is enacted, it would remove some uncertainty and be positive for the U.S. economy.
At the beginning of Wednesday’s press conference, Powell paid homage to former Fed Chairman Paul Volcker, who died this week, saying “what is perhaps most admirable about him was his character.”
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President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
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The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
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Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
