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Federal Reserve Cuts Rates For Third Time As U.S. Economy Slows

Fed Chairman Jerome Powell Holds News Conference Following FOMC Rate Decision

The Federal Reserve is cutting interest rates by a quarter-point for the third time this year. The rate cut comes as the U.S. economy continues to slow. The widely-anticipated cut was announced after the Commerce Department reported that economic growth in the third quarter increased by just 1.9%. The new rates will hover between 1.5% and 1.75%.

Federal Reserve Chairman Jerome Powell told reporters that the action was taken to help keep the economy strong amid growing uncertainty in global economic markets. Powell said that he expects the economy to continue growing at a moderate pace thanks to the strength of the job market and the resiliency of consumer spending.

Powell did not elaborate on whether the Central Bank will raise interest rates for the fourth time during their next meeting in December.

"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," the Federal Reserve said in a statement.

News of the rate cut sent the markets slightly higher on Tuesday (October 30). The Dow Jones finished the day up 115 points while the Nasdaq saw gains of 27 points, and the S&P 500 was up nearly ten points.

Photo: Getty Images


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