Posts

Showing posts with the label federal funds-rate

FOMC slashed the federal funds rate by 0.25%

Image
  It has a twin impact opportunity and a sense of caution    The Federal Reserve has made the following decisions to implement the monetary policy stance announced by the Federal Open Market Committee [FOMC] in its statement on October 29, 2025:    The Board of Governors of the Federal Reserve System voted unanimously to lower the interest rate paid on reserve balances to 3.90 percent, effective October 30, 2025. As part of its policy decision, the Federal Open Market Committee voted to direct the Open Market Desk at the Federal Reserve Bank of New York, until instructed.    Otherwise, to execute transactions in the System Open Market Account in accordance with the following domestic policy directive; Effective October 30, 2025, the Federal Open Market Committee directs the Desk to, available indicators suggest that economic activity has been expanding at a moderate pace.    Job gains have slowed this year, and the unemployment rate has edged...

FOMC lower the federal funds rate by quarter

Image
The geopolitical tensions likely to support the yellow metal   Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee's 2 percent objective but remains somewhat elevated.   Federal Open Market Committee (FOMC) seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.   In support of its goals, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/2 to 4-3/4 percent. In considering additional adjustments to the target range for the federal funds ...