{"id":123338,"date":"2024-11-08T04:52:47","date_gmt":"2024-11-07T21:52:47","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=123338"},"modified":"2024-11-08T04:52:47","modified_gmt":"2024-11-07T21:52:47","slug":"fed-cuts-rates-again-the-new-york-times","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=123338","title":{"rendered":"Fed Cuts Rates Again &#8211; The New York Times"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<p>Federal Reserve officials <a class=\"css-yywogo\" href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20241107a.htm\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">cut interest rates on Thursday<\/a>, their second reduction of 2024 and the latest sign that policymakers believe that inflation is finally coming under control.<\/p>\n<p>The Fed\u2019s move comes just days after America elected Donald J. Trump as its next president, and at a moment when the U.S. economy stands on the brink of change.<\/p>\n<div>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Fed officials lowered interest rates to a range of 4.5 to 4.75 percent on Thursday, but avoided talking about politics in their post-meeting statement. They included no overt signal about what might come next for interest rates in their release.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">And Jerome H. Powell, the Fed chair, said during a news conference on Thursday afternoon that the Fed\u2019s immediate path would not be impacted by Mr. Trump\u2019s win.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">\u201cIn the near term, the election will have no effects on our policy decisions,\u201d Mr. Powell said. \u201cWe don\u2019t guess, we don\u2019t speculate, and we don\u2019t assume.\u201d<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">America\u2019s central bank is independent of the White House, which means that it sets interest rates without needing approval from the president or administration. To protect that independence, Fed officials try to avoid talking about politics directly.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">But policymakers may need to consider how a Trump presidency might change the economic outlook in the months and years ahead, since it could be important to the outcome of their two official goals: maintaining slow and stable inflation as well as a strong labor market.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">The Fed has been making progress toward those targets in recent months.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Inflation jumped sharply starting in 2021 and peaked in 2022, but it has been moderating ever since. As of the latest report, it is <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/10\/31\/business\/economy\/pce-inflation-fed-september.html\" title=\"\">nearly back to normal<\/a>: September price increases came in at 2.1 percent overall, just above the Fed\u2019s 2 percent goal.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">A \u201ccore\u201d inflation index that strips out food and fuel to capture the underlying inflation trend remains slightly more elevated.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">At the same time, the job market <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/11\/01\/business\/jobs-federal-reserve-interest-rates.html\" title=\"\">has been slowing<\/a>. Companies continue to hire, but at a more muted pace than in 2022 and 2023, and the unemployment rate has nudged higher over the past year.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Given those developments, Fed officials began to cut interest rates with an <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/09\/18\/business\/economy\/fed-reserve-interest-rate-cut.html\" title=\"\">unusually large half-point<\/a> reduction in September. They also forecast at that meeting that they would make another half-point rate cut in 2024, followed by a full percentage point of reductions in 2025. Policymakers <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/09\/30\/business\/economy\/fed-chair-jerome-powell-interest-rate-cuts.html\" title=\"\">have been clear<\/a> for weeks that those moves were likely to come in quarter-point increments, and that when and whether they happen will depend on incoming economic data.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">\u201cIn considering additional adjustments,\u201d the Fed said in its statement Thursday, \u201cthe Committee will carefully assess incoming data, the evolving outlook and the balance of risks.\u201d<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Recent economic data have suggested that there is no need for the Fed to rush. The jobless rate has stabilized, and consumer spending has been surprisingly strong, so the economy does not appear to be anywhere near the precipice of a painful crash.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">\u201cSince earlier in the year, labor market conditions have generally eased,\u201d the Fed\u2019s fresh statement said, dropping previous language that said the labor market had \u201cslowed.\u201d<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">But Mr. Trump\u2019s election could complicate the Fed\u2019s path ahead on rate cuts.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Economists widely think that the big tariff increases Mr. Trump proposed while campaigning \u2014 which <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/11\/07\/business\/economy\/trump-tariffs-trade-what-to-know.html\" title=\"\">could include<\/a> across-the-board levies on all trading partners, and 60 percent tariffs on China \u2014 could lift prices.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">And while trade conflicts did not lead to out-of-control inflation under Mr. Trump\u2019s first presidency, what he is proposing this time is more extensive. These tariffs would also come at a time when inflation has already been high. And they could come in conjunction with other White House policies, like tax cuts, that have the potential to add renewed fuel to price increases.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">It is unclear exactly how much Mr. Trump\u2019s plans will change the economic picture, because much depends on how they are implemented. But investors started to bet on faster price increases and fewer Fed rate reductions as Mr. Trump\u2019s victory began to look more likely.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">For the Fed, the immediate question will be whether it still makes sense to lower interest rates in December, the central bank\u2019s next gathering and the final meeting of 2024. That move was already widely seen as likely but not guaranteed.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Policymakers will also release a fresh set of economic projections following that meeting. In those forecasts, officials will have to estimate how much they expect to lower interest rates next year \u2014 which means they need to contemplate the path the economy is likely to take in 2025.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">Back in 2016, when Mr. Trump was first elected, Fed officials and staff members discussed the <a class=\"css-yywogo\" href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/files\/FOMC20161214meeting.pdf\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">change at length<\/a> at the December meeting following the election, a transcript from the gathering showed. The word \u201celection\u201d surfaced 72 times.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">But officials seemed to view the election as an input into the economic picture, not as a game-changer that required a more immediate reaction.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">The Fed could take that approach again this time.<\/p>\n<p class=\"live-blog-post-content css-h61jh5 evys1bk0\">\u201cWhat they probably will do, and need to do, is start to think about a lot of what-ifs,\u201d Donald Kohn, a former vice chair of the Fed and now a senior fellow at the Brookings Institution, said ahead of the Fed meeting. \u201cThey can\u2019t react until there\u2019s a concrete proposal.\u201d<\/p>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/live\/2024\/11\/07\/business\/fed-interest-rates\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve officials cut interest rates on Thursday, their second reduction of 2024 and the latest sign that policymakers believe that inflation is finally coming under control. The Fed\u2019s move &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=123338\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-123338","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/123338","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=123338"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/123338\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=123338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=123338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=123338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}