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FOMC Policy Announcement & SEP — Rate Cuts Restart
As expected, the FOMC cut policy rates by 25 bps, with the fed funds target range at 4.00%-to-4.25%. This restarts the rate cut campaign which had been on hold since December (after a total of 100 bps in the final four months of last year). The Fed was waiting to see how the Administration’s economic policies unfolded (particularly on tariffs) along with their economic impacts (particularly on inflation). Until recently, solid labour market conditions, acknowledged as recently as the July 30 confab, afforded the Fed time to wait. But since then, the labour data have weakened significantly. The reference to ... (full story)