However, news that Beijing could remove extra tariffs imposed since a year ago on US farm products fanned hopes that a trade deal remains possible.
The big sore spot for both the Fed and the economy at large is a reluctance by US businesses to spend, a hesitance Fed officials and corporate executives blame on Trump's unpredictable trade policy.
"People are VERY disappointed in Jay Powell and the Federal Reserve", the president wrote on Twitter. Finally, if implemented, "Phase 1" of a U.S.
Once again, as widely expected, the Federal Reserve (Fed) voted to cut rates at its October FOMC meeting.
The Fed's new statement says instead that it will review the latest economic data as "it assesses the appropriate path" for its benchmark interest rate. That could be a sizable drop in job growth or consumer spending, which have been the pillars of the economy, as well as a worsening of trade tensions.
Yet, despite the fact that there is little wiggle room left to cut rates further should the economy suddenly start shrinking, Powell said he doesn't believe the Fed is about to start raising rates anytime soon.
The Fed tried to give the financial markets and the public as much warning as possible about what is going to do with the rate, but cannot be trusted expected to move beyond the next meeting as economic data can be moved rapidly.
NEW YORK, Oct 31 (Reuters) - World stock markets slid from 20-month highs on Thursday as uncertainty about a U.S.
Lam to Present Policy Speech as Hong Kong Braces for Recession
Last month, Smith joined House Speaker Nancy Pelosi, D-Calif., and some of the Hong Kong activists at a press conference at the U.S.
In its statement, the Fed couldn't really point to a strong reason for cutting its interest rate.
Pressed to explain under what conditions policymakers would consider another dose of stimulus as appropriate, Powell said, "if developments emerge that cause a material reassessment of our outlook, we would respond accordingly".
U.S. hiring continues and unemployment is low, while inflation is creeping up to the Fed's 2.0 per cent target.
One of the main reasons for the Fed's decision to cut rates this year has been as insurance against the risks to the economy from the Trump administration's nearly 16-month long trade war with China, which has hurt manufacturing and caused a drop in business investment.
Analysts, however, aren't so sure.
Earlier today, the Bank of Canada announced it kept interest rates unchanged, but the Loonie weakened as the central bank presented a cautious tone. Analysts said the Fed's messaging matched investor expectations. But he noted that there are many constraints for faster growth in housing, including unaffordably high prices and difficulties getting building permits. The Fed's latest senior loan officer survey showed softening commercial loan demand for a fourth straight quarter, and year-over-year growth in commercial and industrial loans outstanding has fallen by half in the past six months.
With regards to Indian market, Dennis said, "I have always argued that it is a more defensive market against this sort of backdrop and India is a relatively good performer going forward but how much more absolute upside we can get is very hard to judge because the global equity markets themselves look a little overstretched to the upside". You know, was this all there is or is there likely more monetary juice to come later in the year?