Fed Cuts Rate for the 3rd Time in 2019, Signalling to “Remain Appropriate”

On October 30, 2019, the U.S. Federal Reserve had cut an interest rate for the third time of the year by another 25 basis point to the range between 1.75%-1.5% to support the U.S. economic growth.
Inverstors were looking for a signal for another cut in the future, but the Fed’s Chairman Jerome Powell might have hinted that there would be no further cut as long as the economy did not make a bad turn.

“We believe that monetary policy is in a good place,” said Powell. “We took this step to help keep the economy strong in the face of global developments and to provide some insurance against ongoing risks,” he added. “We see the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook.”

Still, the cut was not on the level to satisfiy the U.S. President Donald Trump when the GDP in the third quarter of 2019 posted a growth of 1.9%, failed to reach 3% as Trump had hoped after tax cuts and other of his actions in the past two years to boost economic growth.

Nevertheless, Dow Jones closed the day at 27,186.69 points, increased 115.27 points or 0.43% while S&P 500 and Nasdaq both gained 0.33%.