FOMC: Monetary easing on fast track
Overview: Following a two-day policy meeting, the Federal Reserve Committee(FOMC) decided last night to cut the fed funds rate by a further 50bp to 3%. This move was widely expected by the markets and among analysts. With yesterdayÂ’s action, the full amount of easing over the past eight days is adding up to a historic high of 125bp. This leaves little doubt that the Fed has put monetary easing on a fast track.
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FOMC January 29-30, Meeting
· In a decision anticipated by the market, the FOMC cut the fed funds rate by 50 basis points to 3.0 percent · FOMC members stressed that the uncertainty surrounding the outlook remains, and inflation expecattations seem to be well anchored · Overall, we believe that future rate cuts depend heavily on the pace of economic activity There are considerable downside risks to economic growth and there has been no improvement since the last FOMC scheduled meeting in December. In the press release
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