Thursday, November 21, 2019

Good News From the Fed

Yesterday, the Federal Reserve released the minutes from its October policy meeting, where it had cut interest rates for a third time this year. Fed officials generally agreed that they likely won’t need to cut interest rates again unless economic conditions change significantly,

Discussions at the meeting indicated that members feel the U.S. economy is in a fairly strong position. They agreed that we're enjoying a healthy labor market and strong spending appetite among consumers, whose activity accounts for about 70 percent of GDP.

However, Fed officials also see “the downside risks surrounding the economic outlook as elevated, further underscoring the case for a rate cut,” they reported. They cited reduced business investment and exports resulting from “weakness in global growth and elevated uncertainty regarding trade developments” as a concern.

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