The Federal Reserve announced a series of overnight and term operations for the next three weeks, signaling that it has control over this vital corner of the financial markets.
The FOMC voted to cut the target range 25 basis points to 1.75% to 2% as “uncertainties” offset prospects for “sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective.”
The Federal Open Market Committee meeting featuring the release of a new Summary of Economic Projections should give the market a better clue as to whether the expected rate cut is part of a mid-cycle adjustment or the second step in an easing cycle.
The producer price index grew 0.1% in August, while the core rate — which excludes food and energy — rose 0.3% in the month, the Labor Department reported Wednesday.
President Donald Trump urged the Federal Reserve to lower interest rates to a level typically reserved for recessions or periods of persistently weak growth, suggesting that such a setting could allow the government to restructure Treasury debt at a lower cost.
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