The Federal Reserve cut interest rates by a quarter-point Wednesday; ending months of speculation surrounding the potential move that could have implications on markets around the world.
“The Federal Reserve lowered its benchmark rate by a quarter-point Wednesday as an insurance policy not against what’s wrong with the economy now, but what could go wrong in the future. It was the first rate cut by the central bank in a decade,” reports CNBC.
“Amid President Donald Trump’s intense political pressure and persistent market expectations, the policymaking Federal Open Market Committee dropped the target range for its overnight lending rate to 2% to 2.25%, or 25 basis points from the previous level,” adds the website.
“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,” writes the Federal Open Market Committee.
ON THE RISE: Federal Reserve Raises Interest Rates for the Fourth Time This Year
The Federal Reserve raised short-term interest rates -yet again- on all Americans for the fourth time this year Wednesday; vowing to reduce the scheduled rate hikes going into 2019.
“As expected, policymakers at the central bank said they voted to hike the benchmark federal funds rate by a quarter percentage point, setting a range of 2.25 percent to 2.5 percent,” writes Fox News.
“The Fed continues to see that the economy has been continuously surpassing expectations throughout year, with exceptional job growth rates month after month in a labor market that has had very little slack, which demonstrates just how healthy it is,” said Steve Rick, chief economist at CUNA Mutual Group.
The current rate remains low by standards set throughout American history, but are now at the highest levels in nearly 10 years.
Read the full report at Fox News.
AMERICA UNLEASHED: Job Market SMASHES Record in August, Over 7 MILLION Openings
The United States job market continued to reach new heights in August 2018, with recently released statistics showing available positions “dwarfed” American workers seeking full-time employment.
According to CNBC, there were over 7.1 million positions available in the United States at the end of August; smashing the previous record of 6.2 million just a month prior.
“Job openings hit a fresh record in August, indicating companies could face more inflationary pressures ahead with a tight labor market,” writes CNBC.
“The vacancies level hit 7.14 million for the month, according to the Job Openings and Labor Turnover Survey, a report Federal Reserve officials watch closely for clues about where employment stand,” adds the article.
The strong data comes just hours after a similar report showed the US Treasury took in a record haul of personal income tax in the 2018 fiscal year.
Read the full report at CNBC.