Fed cut federal funds rate by -25bps to 1.50-1.75% as widely expected. The decision was made by 8-2 votes. Esther George and Eric Rosengren dissented and preferred to keep interest rates unchanged. James Bullard didn’t push for deeper rate cut as he did last time.
Fed seems to kept options for further easing open. It noted that “the Committee will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate.”
Also, “in determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective.”
