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Fed cuts rates on 7-3 vote, gives mixed signals on next move

Added 09-18-19 04:03:02pm EST - “The U.S. Federal Reserve on Wednesday delivered a widely expected interest rate ...” - Reuters.com

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Posted By TheNewsCommenter: From Reuters.com: “Fed cuts rates on 7-3 vote, gives mixed signals on next move”. Below is an excerpt from the article.

WASHINGTON (Reuters) - The U.S. Federal Reserve on Wednesday delivered a widely expected interest rate cut aimed at sustaining a record-long economic expansion, but gave few hints of whether or when it could reduce borrowing costs further.

The U.S. economic outlook is “favorable,” with labor markets strong and inflation likely to return to the Fed’s 2% inflation goal, Fed Chair Jerome Powell said in a news conference after the decision was announced.

But Fed policymakers decided to cut rates, he said, “to provide insurance against ongoing risks” including weak global growth and resurgent trade tensions.

“If the economy does turn down, then a more extensive sequence of rate cuts could be appropriate,” he said. “We are going to be highly data-dependent .... We are not on a preset course.”

The central bank also widened the gap between the interest it pays banks on excess reserves and the top of its policy rate range, a step taken to smooth out problems in money markets that prompted a market intervention by the New York Fed this week.

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