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US Fed Rate Cut: FOMC Plots Another Half-Point Reduction This Year | As It Happened

Fed Chair Jerome Powell said the central bank will continue to monitor fresh data as the FOMC signaled another 50 basis point cut this year.

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After being hawkish for over 32 months, Chair Jerome Powell's mandate now shifts to engineer a soft landing, as data hints at a slowing economy. (Image Source: NDTV Profit)
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After being hawkish for over 32 months, Fed Chair Jerome Powell announced a 50 bps rate cut and discussed a further half-point reduction within this year. Fed officials also revised the inflation outlook downward to 2.3%, compared to 2.6% previously. Catch all the action as it unfolded.
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Jerome Powell Live | Watch Here

Federal Reserve Chairman Jerome Powell will speak on the FOMC's monetary policy decision.

Fed Meeting: US Macro Projection Revised

Federal Reserve officials have raised their expected unemployment rate for this year to 4.4%, up from the June projection of 4%.

At the same time, they revised the inflation outlook downward to 2.3%, compared to 2.6% previously. For core inflation, the committee lowered its projection to 2.6%, a decrease of 0.2 percentage points from June.

Moreover, the forecast for the US GDP growth this year has been reduced to 2%, from the previous 2.1%.


Powell Speech Ends: Key Highlights

  • Fed remains squarely focused on dual mandate goals.

  • Labour market has cooled from formerly overheated state.

  • Fed committed to maintaining economy's strength.

  • Fed can maintain labour strength with policy adjustment.

  • Labour market conditions have continued to cool.

  • Unemployment rate has moved up but remains low.

  • Labour market not a source of elevated inflation pressures.

  • Long-term inflation expectations appear well-anchored.

  • Acutely aware high inflation poses significant hardship.

  • Upside inflation risks have diminished, downside risks to employment have increased.

  • US economy is in a good place; rate cut is to keep it there.

  • We might well have cut in July if policymakers had known the July employment report.


Fed Rate Reaction: US Stocks Pare Gains

  • S&P 500 up 0.4%

  • Dow Jones Industrial Average up 0.2%

  • Nasdaq up 0.2%


Jerome Powell Live: Not Going Back To Zero Rates Era, Says Fed Chair

Fed chief Jerome Powell said the era of near-zero interest rate is long gone.


Jerome Powell Live: Immigration Impact

Powell said migration from America's southern border, a contentious political issue, has increased while hiring has cooled, leading to higher number of job-seekers.

















































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