FED Rate Decision
The Federal Reserve cut interest rates
The Fed announced its monetary policy decision at 18:00 GMT on September 18. Jerome Powell held a press conference at 18:30 GMT.
After a two-day policy meeting, it is widely expected that the Fed will cut the federal funds rate by 25 basis points to 1.75-2.00%. This will be the second rate cut since the 2008 financial crisis. If the central bank delivers as expected, it will pay close attention to the statement.
Also, according to Powell’s words to find clues about the future monetary policy path, people can forecast how the “mid-term cycle adjustment” will continue
At the same time, a few hours after the resolution of the meeting, the attack on the Saudi oil facility pushed oil prices up and then fell sharply，which exacerbated geopolitical problems. Another incident is the rise in interest rates in the US money market. The repo rate soared to 10%, and the Federal Reserve Bank of New York responded with a repurchase auction and received $75 billion, an action that has not been used on a large scale since 2008.
After the interest rate decision was published, the spot gold short-term fell below 1,500 US dollars/ounce
This week’s jobless claims data has hit unprecedented numbers. The number jumped to 3.28 million. Initial expectations of 1-1.5 million, which was still a very high estimate, were blown out of the water.
The New Zealand Dollar is fighting it’s way back up as the country enters it’s first official day of nationwide lockdown. It posted a 0.67% gain for the trading day, up to 0.58390 cents against the US Dollar. Just a week ago the NZD had dropped to 0.56, and looked ready to hit the 55 cent mark, as news broke of Air New Zealand’s layoffs.
The Nikkei 225, or Japanese Stock Index had an 8% gain for the day, following on from its 7% gain from the previous day. Less than a week ago the Nikkei had just hit lows not seen since 2017, falling below 20,000 points. However in just 2 days it has made back its losses and is now rapidly on the rebound back to the 20,000 mark.
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