Federal Reserve cuts interest rates again - Reduction aims to balance inflation and support the labor market
The Federal Reserve approved its second consecutive interest rate cut, moving at a less aggressive pace than before but continuing its efforts to adjust monetary policy.
Following September's big half-percentage point cut, the Federal Open Market Committee cut the benchmark overnight lending rate by a quarter of a percentage point, or 25 basis points, to a target range of 4.50%-4.75% . The rate determines what banks charge each other for overnight lending, but it often affects consumer debt instruments such as mortgages, credit cards and car loans.
Markets had widely expected the move, which was telegraphed both at the September meeting and in subsequent remarks from policymakers since then. The vote was unanimous, unlike the previous move that saw the first "no" vote by a Fed governor since 2005.
The post-meeting statement reflected some changes in the way the Fed views the economy. Among them was a changed view on how it evaluates efforts to reduce inflation by supporting the labor market.
"The committee judges that the risks to the achievement of the employment and inflation targets are roughly in balance," the document said, a change from September when it noted "greater confidence" in the process.
The statement downplayed the labor market a bit, saying that "conditions have generally eased and the unemployment rate has increased, but remains low." The committee again said the economy "has continued to expand at a solid pace."
Officials have largely framed the policy change as an effort to bring the rate structure back in line with an economy where inflation is returning to the central bank's 2% target, while the labor market has shown some signs of easing.
Gross Domestic Product grew at a 2.8% pace in the third quarter, less than expected and slightly below the level of the second quarter, but still above the historical trend for the US of around 1.8%-2%. Preliminary monitoring for the fourth quarter shows growth of around 2.4%.
Financing for the development of railway transport - Deputy Prime Minister Balluku, in the parliamentary committee for Economy and Finance
The Parliamentary Committee for Economy and Finance is holding a hearing for the review of the budget and investments foreseen by the Ministry of......
The Great Ring of Tirana, budget also for 2025 - Deputy Prime Minister Balluku, in the parliamentary committee for Economy and Finance
The Parliamentary Committee for Economy and Finance is holding a hearing for the review of the budget and investments foreseen by the Ministry of......
"LOST NAME"/Why Noli gave SHENGINI the name "WILLSON", in honor of the American President!
By Kreshnik Kucaj In the session of February 2, 1924, the Albanian parliament observed 5 minutes of mourning. Two days earlier, in the United States of......
The budget for education, about 620 million euros/ It is intended to build or reconstruct about 70-80 educational facilities
The funds for the "Ministry of Education" in 2025 are expected to reach about 60.02 billion ALL or almost 620 million euros. Compared to a year ago, it turns......
How has this week ended for major currencies?
The American dollar closed the week in relatively stable quotes as there were no significant fluctuations in value from yesterday, being bought today at 90.4......
China develops 'AI' model for military application - Researchers used Meta's public model to create 'ChatBIT'
Chinese research institutions affiliated with the People's Liberation Army have used Meta's publicly available Llama model to develop an artificial......
ALL 1.29 billion for housing - The 2025 budget also provides for subsidies for families in need
The government aims to provide adequate and affordable housing by 2030 for approximately 35,0000 individuals/families who have applied for housing and cannot......
Budget 2025, 18.53 billion for PPP contracts - Deputy Prime Minister Balluku, in the parliamentary committee for Economy and Finance
The Parliamentary Committee for Economy and Finance is holding a hearing for the review of the budget and investments foreseen by the Ministry of......
