Wednesday 3 June 2020 ,
Wednesday 3 June 2020 ,
Latest News
  • Coronavirus: Bangladesh reports highest 2,911 cases in a day; 37 more die
  • Coronavirus: Bangladesh reports highest 2,911 cases in a day; 37 more die
  • Coronavirus Bangladesh: Total infected now 52,445; death toll jumps to 709
  • Coronavirus Bangladesh: Total infected now 52,445; death toll jumps to 709
  • Global coronavirus death toll reaches 375,526
  • Coronavirus: 2,059 recover among 5,333 infected police members in Bangladesh
  • We will be able to step forward defying all hurdles: PM
  • Coronavirus Bangladesh: Total cases rise to 49,535; death toll jumps to 672
  • Offices of educational institutions will remain open: Ministry
  • US protest: George Floyd’s death homicide, official post-mortem declares
  • Trump threatens military mobilization against US protests
  • Coronavirus Hotline Numbers: 01944333222, 16263, 333; website: www.corona.gov.bd
21 September, 2019 00:00 00 AM
Print

Fed says bigger rate cut for insurance

for insurance AFP, Washington

Federal Reserve policymaker James Bullard said yesterday he dissented from this week’s vote on interest rates because he wanted to see a bigger rate cut as “insurance” for the US economy.

Bullard cited elevated trade uncertainty and said: “US manufacturing already appears in recession, and many estimates of recession probabilities have risen.”

The Fed’s policy-setting committee on Wednesday cut the benchmark borrowing rate by a quarter-point to a range of 1.75-2.0 per cent, but Bullard, president of the St Louis Fed, said a half-point cut “would provide insurance against further declines in expected inflation and a slowing economy subject to elevated downside risks.”

He was one of three members of the Federal Open Market Committee who dissented, although the other two favored keeping rates unchanged.

Bullard has long argued that inflation has been stuck too far below the Fed’s two percent target, so the US central bank can afford to do more to boost the economy.

As the Fed’s preferred inflation measure rose last year, the FOMC

raised interest rates four times. But price pressures have been softening since then and is well below the target, and President Donald Trump’s trade war with China is having an impact, so the central bank in late July cut the

policy lending rate for the first time in more than a decade.

Fed Chair Jerome Powell said while policymakers do not expect a recession, trade uncertainty is creating “cross winds” that are weighing on the economy, crimping business investment and exports.

Bullard said, “It is prudent risk management, in my view, to cut the policy rate aggressively now and then later increase it should the downside risks not materialize.

 

Comments

Most Viewed
Digital Edition
Archive
SunMonTueWedThuFri Sat
010203040506
07080910111213
14151617181920
21222324252627
282930
More Business stories
Bangladesh Railway losing Tk 4-5cr every day Bangladesh Railway is losing Tk 4-5 crore in revenue every day following the suspension of all train services across the country amid the coronavirus outbreak. On March 24, the government suspended all…

Copyright © All right reserved.

Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Disclaimer & Privacy Policy
....................................................
About Us
....................................................
Contact Us
....................................................
Advertisement
....................................................
Subscription

Powered by : Frog Hosting