Fed lowering rates

Jerome Powell

The Fed is once again data-dependent

Christian Scherrmann (DWS) |  As has been widely anticipated, the Fed is again lowering key rates by 25 basis points – the third step in the current cycle. Judging from the obligatory statement, it seems quite plausible the Fed might be done with cutting for a while. From now on, its main focus seems to be on monitoring the U.S. economy, rather than, say, on pondering whether the current interest rate level appears appropriate, given the current situation. In short, the Fed is once again data-dependent.