Jakarta, hitclubapk3 Indonesia
—
Central bank
United States
(US) Federal Reserve or
The Fed
trim
interest rate
benchmark by 25 basis points to the range of 3.5 percent to 3.75 percent on Wednesday local time.
However, the Fed warned that the chances of further cuts would become narrower, as differences of opinion among central bank officials widened.
The Federal Open Market Committee (FOMC) emphasized that its next decision will depend heavily on economic data, growth prospects and the balance of risks.Fed Chair Jerome Powell said the current cuts put the central bank in a ‘comfortable’ position to wait for economic developments.
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“We are at the upper end of the neutral range. We have not made a decision for January,” he was quoted as saying
CNBC International
, Thursday (11/12).
However, the FOMC decision was not unanimous.Three members rejected this decision.One of them, Governor Stephen Miran wants a deeper cut of 50 bps.
The other two who voted against were Kansas City Fed President Jeffrey Schmid and Chicago Fed President Austan Goolsbee who voted to keep interest rates on hold.
The differences in views between officials reinforce the picture of a tug-of-war between the hawkish camp, which focuses on suppressing inflation, and the dovish camp, which pushes for easing to support the labor market.
This cut is in line with market expectations, namely the reduction in interest rates which will continue to be carried out with an aggressive attitude towards inflation.
The market also reacted positively.The Dow Jones index jumped 500 points, while US government bond yields moved down.
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(pta)
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