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Fed Chairman Powell Hints At Interest Rate Cut; Stocks Rally
Stocks rallied Wednesday as Federal Reserve Chairman Jerome Powell testified about challenges facing the U.S. economy, adding to expectations that the central bank will cut interest rates later this month.
The Fed had hinted at such a cut in June.
"The bottom line for me is that the uncertainties around global growth and trade continue to weigh on the outlook," Powell told members of the House Financial Services Committee on Wednesday. "In addition, inflation continues to be muted."
Cut taxes, cut interest rates, who fucking cares it doesn't matter. Everything is fine! Free money for everyone... except you know, actually poor people!
What the hell is going on here?
Are Republicans just trying to fluff the numbers during an election year? Or is the new Fed chair really cutting rates because Trump whined about it? Is there something more sinister they're plotting?
Does this mean I'm going to have to refinance?
EDIT: UPDATE
The Federal Reserve is cutting interest rates for the first time in over a decade — a preemptive move aimed at extending the already record-long economic expansion.
The Fed on Wednesday lowered its target for the key federal funds rate by a quarter percentage point. The move should decrease the cost of borrowing, including for credit cards, auto loans and mortgages.
"The outlook for the U.S. economy remains favorable and this action is designed to support that outlook," Fed Chairman Jerome Powell said. He described the rate cut as an insurance policy against potential speed bumps for the economy, including rising trade tensions and a slowdown in global growth.
"There is really no reason why the expansion can't keep going," Powell said. "Inflation is not troublingly high. If you look at the U.S. economy right now, there's no sector that's booming and therefore might bust."
Although the rate cut had been widely telegraphed in advance of Wednesday's announcement, the stock market reacted negatively to Powell's comments. The Dow Jones Industrial Average fell more than 450 points before paring its losses to close down 334 points, or 1.2%. The S&P 500 and the Nasdaq both fell more than 1%.
Stocks rallied Wednesday as Federal Reserve Chairman Jerome Powell testified about challenges facing the U.S. economy, adding to expectations that the central bank will cut interest rates later this month.
The Fed had hinted at such a cut in June.
"The bottom line for me is that the uncertainties around global growth and trade continue to weigh on the outlook," Powell told members of the House Financial Services Committee on Wednesday. "In addition, inflation continues to be muted."
Cut taxes, cut interest rates, who fucking cares it doesn't matter. Everything is fine! Free money for everyone... except you know, actually poor people!
What the hell is going on here?
Are Republicans just trying to fluff the numbers during an election year? Or is the new Fed chair really cutting rates because Trump whined about it? Is there something more sinister they're plotting?
Does this mean I'm going to have to refinance?
EDIT: UPDATE
The Federal Reserve is cutting interest rates for the first time in over a decade — a preemptive move aimed at extending the already record-long economic expansion.
The Fed on Wednesday lowered its target for the key federal funds rate by a quarter percentage point. The move should decrease the cost of borrowing, including for credit cards, auto loans and mortgages.
"The outlook for the U.S. economy remains favorable and this action is designed to support that outlook," Fed Chairman Jerome Powell said. He described the rate cut as an insurance policy against potential speed bumps for the economy, including rising trade tensions and a slowdown in global growth.
"There is really no reason why the expansion can't keep going," Powell said. "Inflation is not troublingly high. If you look at the U.S. economy right now, there's no sector that's booming and therefore might bust."
Although the rate cut had been widely telegraphed in advance of Wednesday's announcement, the stock market reacted negatively to Powell's comments. The Dow Jones Industrial Average fell more than 450 points before paring its losses to close down 334 points, or 1.2%. The S&P 500 and the Nasdaq both fell more than 1%.
Also,
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