Powell has asserted that Trump's pressure has had no effect on the rate policies of the Fed, which is considered an independent agency.
Stocks fell and bond yields rose on Wall Street Wednesday after the Federal Reserve lowered its key interest rate for the first time in a decade but left investors feeling uncertain about the likelihood of further cuts.
"We may get a dissent or two, but it seems like a 25-basis-point cut is pretty much locked in", said Julia Coronado, president and founder of MacroPolicy Perspectives LLC in NY. The FOMC cited the "implications of global developments for the economic outlook as well as muted inflation pressures" as its reasoning for the cut.
Federal Reserve chair Jerome Powell will have more to say about why the bank decided to make the move at a press conference that's set to begin at 2:30 pm eastern time.
Also, it might compromise the Fed's independence, creating the impression that the central bank was caving to President Donald Trump's insistent calls for deeper cuts.
Credit cards and home equity lines of credit do move in step with the Fed's actions so rates will drop slightly, but with some delay.
"It's smart of them to go ahead and take out some insurance here".
2 meteor showers to peak Monday night
Amongst these two meteor showers, the Delta Aquarids is the brightest one with 20 or more meteors per hour. If you need more information, NASA has a website to determine meteor shower activity where you live.
This month marked the longest economic expansion the USA has ever seen, and historically all expansions must come to an end - the question is when.
Heading into Wednesday's Fed decision, the S&P 500 was up about 3% since June 19, when the Fed first signalled a rate cut was likely as it pledged then to "act as appropriate to sustain" the record-long USA expansion.
Rosengren and George have raised doubts about a rate cut in the face of the current expansion, an unemployment rate that is near a 50-year-low, and robust household spending. Sustained expansion of economic activity and a strong labor market are also the most likely outcomes, the Fed said.
The Fed has held the interest rate steady in its prior announcements this year after raising the interest rate four times in 2018. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and global developments.
The move is seen as an early bid to prevent a downturn in the US economy that forecasters say will result from Trump's trade war with China.
The central bank cut its benchmark rate by a quarter-point to a range of 2% to 2.25%. Currently, traders are pricing in a 77 percent chance of a second quarter-percent cut during the FOMC's September meeting. The IMF specifically mentioned worldwide trade disputes as a headwind to global economic growth.
The FOMC vote was eight in favor of the rate cut with two governors preferring no change in policy.
The US central bank, as had been well telegraphed in advance, moved ahead with a 25-basis-point interest rate cut that it characterized an insurance move against risks washing onto American shores from overseas, including from a prolonged US-China trade war.