Fed signals interest rate cuts possible later this year
By Howard Schneider and Jason Lange WASHINGTON (Reuters) - The U.S. Federal Reserve on Wednesday signaled it could cut interest rates by as much as half a percentage point over the remainder of this year, as it responded to increased economic uncertainty and a drop in expected inflation. The Fed, which held rates steady after the end of its latest two-day policy meeting, said it 'will act as appropriate to sustain' a nearly 10-year economic expansion and dropped a promise to be 'patient' in adjusting rates.
By Howard Schneider and Jason Lange
WASHINGTON (Reuters) - The U.S. Federal Reserve on Wednesday signaled it could cut interest rates by as much as half a percentage point over the remainder of this year, as it responded to increased economic uncertainty and a drop in expected inflation.
The Fed, which held rates steady after the end of its latest two-day policy meeting, said it "will act as appropriate to sustain" a nearly 10-year economic expansion and dropped a promise to be "patient" in adjusting rates. Nearly half its policymakers now show a willingness to lower borrowing costs over the next six months.
Even policymakers who did not write down a forecast for a rate cut this year believe "that the case for somewhat more accommodative policy has strengthened," Fed Chairman Jerome Powell said in a news conference following the meeting.
The baseline outlook remains "favorable," he said, and "there was not much support for cutting rates now at this meeting." But, he added, there will be plenty of incoming data in the near term that will help policymakers figure out if the risks of a less favorable outcome continue to rise.
"We will act as needed, including promptly if that's appropriate, and use our tools to sustain the expansion," he said.
Interest-rate futures surged after the Fed's policy statement and projections and Powell's remarks, showing traders are now betting heavily on three rate hikes by the end of the year.
(Reporting by Howard Schneider, Jason Lange and Ann Saphir; Editing by Paul Simao)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Rajendra Jadhav MUMBAI (Reuters) - India said on Sunday it was considering granting an emergency authorisation for a COVID-19 vaccine, particularly for the elderly and people in high-risk workplaces, as the country's number of reported infections passed 4.75 million. India, which has consistently reported over 1,000 COVID-19 deaths daily this month, has now recorded 78,586 fatalities from the disease. It lags only the United States globally in overall number of infections, but it has been adding more daily cases than the United States since mid-August
BERLIN (Reuters) - Germany's Christian Democrats were set for an election win in the western state of North Rhine-Westphalia on Sunday, an exit poll showed, but their share of the vote shrank, denting state premier Armin Laschet's ambitions to succeed Chancellor Angela Merkel. Laschet, who is positioning himself as the continuity candidate to succeed Merkel, had hoped to increase the Christian Democrats' share of the vote in the local elections to boost his standing ahead of a December party leadership showdown
By Marco Aquino LIMA (Reuters) - A bid by the opposition-led Congress to remove Peruvian President Martín Vizcarra appeared to falter on Sunday, after key political leaders rejected the ouster over fears the upheaval would plunge the country into a political crisis. César Acuña, head of the second-largest party in Congress and a possible candidate in 2021 presidential elections, said an ouster would "aggravate" the country's current situation, already fragile from the impact of the coronavirus crisis. Acuña's party had given key votes last Friday to start impeachment proceedings against Vizcarra over leaked audio tapes some lawmakers said showed the president trying to downplay ties to a singer being probed over government contracts