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.”
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
