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2019 ж. 31 years. күні жарияланды
기준 금리 11 년 첫 인하: 로이터 연결
How is the market reacting to the Fed's first interest rate cut since the 2008 financial crisis? What do badysts say? Let's go live on Wall Street. Angela Moon, Thomson Reuters New York's key market correspondent, joins us live.
Angela, first of all, how is the market reacting to the latest 25-basis-point rate cut by Fed Chairman J. Powell? There had been speculation that it would be 50 basis points.
Well, Connyoung, some of the major movements we saw on Wall Street today. US stocks closed sharply lower, as the Dow Jones industrial average slumped to three digits, the largest decline since May 31 this year. The S & P also fell by 1.1% and the Nasdaq by 1.2%, as you've said, investors were disappointed Although the Federal Reserve has cut interest rates it refrained from suggesting further rate cuts.
J. Powell's remarks at the press conference a few hours ago
he said that there are really two parties to think about it.
First of all, the US economy still has good prospects – the data since the June meeting have shown it. But, they need to cut rates because of problems overseas.
What does he really mean? We wonder what will be his next step.
As you have said, Connyoung, while the unemployment rate in the United States is still at its lowest for fifty years and inflation is under control, the Fed is rather focused on Potential threats to the record 11-year economic growth of President Trump's trade policies and the resulting slowdown in the global economy. growth. Today's rate cuts are really about the Fed's efforts to protect the economy from the effects of the trade war between President Trump and China. Next steps? Well, your hypothesis is as good as mine.
A few days ago, Janet Yellen commented on the headwinds that are forming outside the United States. How much of a worry we see from the Fed has to do with the big trade spillover. If an agreement had been reached between the United States and China – perhaps mid-September – could we see the change of direction of the Fed?
It remains to be seen. At a press conference following the release of the ruling, President Powell called the adjustment rate a "mid-cycle adjustment" and does not rule out further cuts. But he also said that it was "not the beginning of a long series of rate cuts" as this route is followed only in case of more serious economic distress. So it's really uncertain at this point and we know that the only thing that WAll Street does not like more than anything is uncertainty.
How do badysts expect this rate cut, perhaps even more in the coming months, to have an impact on the global economy?
Analysts say the biggest surprise here is what was not said: nothing in the badertion about slowing growth in the US, and there is not much that suggests that another rate reduction is to be expected ",
The threat of a recession has always been the main catalyst for monetary easing, but today we have seen a Fed settle for inflation and the global economy. So these two factors will be watched closely by everyone for the rest of the summer.
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