FED begins monetary policy easing

Thanh Hà |

The US Federal Reserve (FED) cut interest rates by 0.5% (50 basis points) on September 18, starting a larger-than-usual monetary policy easing.

"The Committee is more confident that inflation is progressing sustainably toward 2 percent and assesses that the likelihood of achieving the maximum employment and inflation goals is roughly balanced," policymakers on the Fed's interest rate-setting committee said in a statement.

According to Reuters, this drastic interest rate cut by the FED only met with opposition from Governor Michelle Bowman - who supported a 0.25% reduction.

Notably, after this interest rate cut, the FED is expected to cut interest rates by another 0.5% this year, 1% in 2025 and a final 0.5% in 2026 to have an interest rate in the range of 2.75% - 3.00%.

"This decision reflects our growing confidence that with appropriate withdrawal of the policy stance, the strength in the labor market can be maintained amid moderate growth and inflation falling sustainably to 2 percent," Fed Chairman Jerome Powell said in a press conference after the latest policy meeting.

"The Fed ended the pause with a bang. It's a strong signal that the Fed cut 50 basis points and expects another 50 basis points of cuts this year," said Brian Jacobsen, chief economist at Annex Wealth Management.

Although inflation "remains elevated," the Fed's latest statement emphasized that policymakers chose to cut interest rates to the 4.75%-5.00% range "based on progress on inflation and the balance of risks."

The US central bank "will be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the achievement of the committee's objectives," which address both aspects of its dual mandate of price stability and maximum employment, the statement said.

Reuters noted that this week's Fed policy meeting is the last before US voters go to the polls in the 2024 US presidential election scheduled for November 5. The next Fed policy meeting is scheduled to last two days, starting just one day after the 2024 US presidential election.

After the Fed announced its decision to cut interest rates on September 18 and made forecasts, according to Reuters, investors in contracts related to the Fed's policy interest rate gave a probability of about 64% of a 0.25% cut at the Fed's next meeting in November.

The US Federal Reserve has kept its policy interest rate unchanged at around 5.25% - 5.50% since July 2023 as inflation eases from a 40-year high to near the central bank's 2% target.

The US Federal Reserve uses interest rates as its main tool to control inflation and unemployment. Higher interest rates are used to offset rising prices, while lower rates are designed to stimulate demand and boost employment. The US central bank began raising interest rates sharply in 2022 to respond to rapid inflation amid the COVID-19 pandemic.

Thanh Hà
TIN LIÊN QUAN

The situation of arranging cadres in the old Binh Duong to work in Ho Chi Minh City after the merger

|

HCMC - Eight departments have transferred cadres and civil servants from Binh Duong to HCMC for work, while seven departments still have a department in the Binh Duong area.

262 commune and ward trade unions have been established nationwide

|

President of the Vietnam General Confederation of Labor Nguyen Dinh Khang said that according to statistics, up to now, 262 commune and ward trade unions have been established.

The leader of the Department of Culture, Sports and Tourism of Da Nang City said: The paraglider accident in Son Tra is a rare and unfortunate incident

|

The paraglider accident that killed a tourist at Son Tra mountain is an incident that has not happened in more than 10 years in Da Nang.

Dozens of businesses in La Phu (old) handed over 25 tons of candy to destroy

|

Hanoi - More than 50 individual businesses in the old La Phu commune voluntarily handed over goods with a quantity of about 25 tons of candy and food of all kinds for destruction.

Stock liquidity has an explosive trading session of more than 1.6 billion USD

|

The group of "king" stocks is racing to flourish, helping the stock market continue to accelerate with billion-dollar liquidity.

Ho Chi Minh City Standing Deputy Secretary Nguyen Thanh Nghi has new duties after the merger

|

HCMC - Mr. Nguyen Thanh Nghi - Standing Deputy Secretary of the Ho Chi Minh City Party Committee was appointed as Secretary of the Party Committees of the Ho Chi Minh City Party agencies after the merger.

Stocks await positive impact after Fed cuts interest rates

Gia Miêu |

Stock investors are eagerly awaiting positive effects after the Fed lowered interest rates.

Holding breath waiting for interest rate cut from Fed

Ánh Mai (theo yahoo!finance) |

The US Federal Reserve (Fed) is expected to cut interest rates for the first time in four years, with expectations of a 25-50 basis point cut and further cuts to follow.

Giá vàng tăng khi FED chuẩn bị cắt giảm lãi suất

Khương Duy (Theo Kitco) |

Theo Kitco, giá vàng đang vào đà tăng cao. Chính sách lãi suất của Cục Dự trữ liên bang Mỹ (FED) có thể hỗ trợ mạnh mẽ cho kim loại quý.