- As widely expected, the Federal Open Market Committee (FOMC) on Oct. 30, 2019 cut the federal funds target-rate range by a quarter point to 1.50%–1.75%, the third rate cut this year.
- Federal Reserve (Fed) officials made minor changes to their September statement, with markets focused on the Fed altering language from “act as appropriate” to “assesses the appropriate path” as it relates to future rate decisions.
- For the first time in six years, the Fed’s rate-setting committee held an unscheduled meeting and announced a plan to:
– Buy short-term U.S. Treasury debt, starting at $60 billion per month and continuing into the second quarter of 2020.
– Conduct term and overnight repurchase-agreement operations through at least January 2020.
- Expectations for future Fed rate cuts, according to Bloomberg, currently stand at*:
– December: 24.5%
– January: 41.9%
– March: 51.7%
It appears the Fed put may be on hold for the time being. Powell reiterated the Fed is working to sustain a favorable economy, and principal risks are moving in a positive direction. The Committee emphasized its stance will continue to be adjusted based on the evolving risk picture. Two Committee members, Kansas City Fed President Esther George and