The Fed Is expected to cut its key interest rate by a quarter point Wednesday. It trimmed the rate in July for the first time in a decade.
The Federal Reserve on Wednesday cut its key interest rate for the second time in less than two months, indicating the economy was hampered by trade wars. Chairman Jerome Powell said he would.
The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. When a depository institution has surplus balances in its reserve account, it lends to other banks in need of larger balances.
Thus, the Fed will not hesitate to cut interest rates next year if FOMC members’ expectations of economic improvement do not come true. The bank prime lending rate declined to 4.75% after the.