Fed Unlikely to Cut Rates Again Unless Economy Shows Signs of Weakening

Minutes of the Federal Reserve’s last policy meeting reinforced the central bank’s message that it may be done cutting rates barring economic weakness.

WASHINGTON — Federal Reserve officials do not plan to cut interest rates again unless economic data begins to show cracks, a message reinforced by the minutes from their October meeting.

After the Fed cut interest rates last month — its third reduction this year — most officials thought that policy “would be well calibrated” to support the economy, according to the minutes, unless something were to cause “a material reassessment” of the outlook.

A “couple” of officials even thought that the Fed should make it clear that another rate cut was unlikely “unless incoming information was consistent with a significant slowdown in the pace of economic activity.”...


RSK: Honestly I do not think they can go lower. Home sales jumped a bit since the last rate drop and that is what the Feds needed among other things.

- - Volume: 7 - WEEK: 48 Date: 11/26/2019 7:52:09 AM -