President Trump’s efforts to cajole, coerce and bully the Federal Reserve into lowering rates came to naught as the central bank opted to maintain the target range for the federal funds rate at 4.25% to 4.50%.
Today’ vote marked the fifth straight meeting to end without a rate cut. However, the voted by the policymaking Federal Open Market Committee was not unanimous – Fed governors Michelle W. Bowman and Christopher J. Waller argued to lower the rate by one-quarter percentage point. The dissenters marked the first since 1993 when more than one governor sought a different outcome from the full Fed board.
In a statement, the Fed offered a vaguely worded possibility that a rate cut was eventually coming.
“In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” said the statement. “The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2% objective.”
The FOMC will meet again from Sept. 16-17.
Soo….How would a rate decrease affect the people who depend on interest payments, like retirees, widows and others whose income is from interest bearing investments?
CR, I’m pretty sure investment income could drop again to nearly nothing as we saw a few years ago. If anything, we NEED a rate hike large enough to really push home prices down. Current prices are at insane levels, all due to the Fed rate cuts too low for too long and manipulations through mortgage backed securities.
What is Powell hiding. Fraud that’s what. He doesn’t want to give up his position for fear of being discovered. He’s increased the price of the “fix” up of the headquarters to pocket the excess. He will hang in for 8 months thinking it will go away. The American people are not stupid. We know he’s hiding something and want him to fess up. And give up so people who want to buy a home can afford to obtain a mortgage. Bring down those interest rates and everyone will be able to live their lives as intended in the U.S.A.