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US Federal Reserve cuts 0.25%, cites “global developments” and muted inflation for rate cut...
Federal Reserve Chair Jerome Powell repeatedly cites “trade policy uncertainty” as a factor in this first rate cut in a decade... - a win win for President Trump there.
NB Sterling pretty much recovered yesterday’s losses on forex markets today, esp vs euro, but dollar surge after Fed decision has wiped that out vs dollar
“We never take into account political considerations” says Fed Chair Powell after President Trump’s repeated pressure for larger cuts - says we don’t conduct monetary policy “to prove our independence”... after a series of pressurising tweets/ comments eg
Powell on sticky wicket here explaining why cut necessary, against backdrop of President telling him to do it... Markets hearing reluctance to cut further... central bank independence has been cornerstone of containing inflation, taken for granted. Around world now up for grabs.
Powell outlines a scenario where rates might go up again after being cut “not likely” but has happened in past cycles he says ...
