This round of interest rate cut began in July this year, and the federal funds rate dropped from 2.25% - 2.5% to 2.00% - 2.25%, which is the first time since the financial crisis in 2008. At that time, Federal Reserve Chairman Powell said at a press conference that the interest rate cut was an adjustment in the middle of the policy, and the interest rate cut was for the protection of the American economy; it was only a one-time interest rate cut, not the beginning of a long-term interest rate cut cycle.
The wording of the statement or implied that the rate cut has been completed by Powells adjustment in the cycle.
The three major U.S. stock indexes rose at the end of the day and all achieved gains. The Dow ended 0.43% higher at 27186.69, the S & P 500 at 3046.77, up 0.33%, a record high, and the NASDAQ at 8303.98, up 0.33%.
The Federal Reserves October 31 statement compared with September 18 statement:
Since the September meeting, the Federal Open Market Committee (FOMC) has received information that the labor market has continued to perform strongly and economic activity growth has moderated. Employment growth was strong and the average unemployment rate remained low for several months. While household spending has grown strongly this year, fixed business investment and exports have continued to weaken. Although household spending has grown strongly this year, fixed business investment and exports have weakened. The overall inflation measure for the next 12 months is consistently below 2% compared with inflation excluding food and energy. The market-based inflation compensation index remained depressed, and the long-term inflation expectation based on the survey remained almost unchanged.
Consistent with the Federal Reserves statutory responsibilities, the Commission aims to maximize employment and price stability. In order to achieve these goals, the committee decided to reduce the target range of the federal funds rate to 1.50% to 1.75% due to the impact of changes in the global economic outlook and weak inflationary pressures. To achieve these goals, the committee decided to reduce the target range of the federal funds rate to 1.75% to 2.00%. The move supports the committees view that continued expansion of economic activity, a strong labor market and a symmetrical inflation target of close to 2% are likely results, but uncertainty in the future continues. The committee will continue to monitor future economic data to assess the range of federal funds rates appropriate for the economic outlook. (original in September: after careful consideration, the Committee has determined the future path of the target range of the federal funds rate, and will continue to monitor future economic data, and take appropriate actions to maintain economic expansion, i.e. a strong labor market and a symmetric target of inflation close to 2%).
With regard to determining the timing and scale of further adjustment of the target range of the federal funds rate in the future, the committee will assess the actual and expected economic conditions relative to the employment maximization and the symmetrical inflation target of 2%. In the assessment process, the committee will consider various information, including indicators of the labor market environment, inflation pressure and inflation expectations, financial and international situation development data, etc.
At the FOMC monetary policy meeting, the voters included: Jerome h. Powell, chairman of the FOMC Committee; John C. Williams, vice chairman of the Committee (Chairman of the New York Fed); Michelle W. Bowman, chairman of the Federal Reserve; Lael Brainard, chairman of the St. Louis fed; James Bullard, chairman of the St. Louis fed. Richard H. Clarida, fed director; Charles levans, Chicago Fed chairman; Randall K. Quarles, fed director. (delete: James Bullard, chairman of the Federal Reserve in St. Louis, voted against this meeting, preferring to keep the target range of the federal funds rate down to 1.50% - 1.75%). Esther George (Kansas Fed chairman) and Eric srosengren (Boston Fed chairman) voted against this meeting, and they preferred to maintain the target range of the federal funds rate at 1.75% - 2.00%. At this meeting, they tend to maintain the target range of the federal funds rate at 2.00% - 2.25%. Source: surging news editor: Wang Xiaowu NF