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  • Dec 18, 2024

Fed Tweaks Rate on Key RRP Tool for First Time Since 2021

(Bloomberg) -- The Federal Reserve, in addition to its main interest-rate cut, lowered the rate on a facility used to help control its benchmark as it aims to keep US funding markets running smoothly.Most Read from BloombergNYPD Car Chases Are Becoming More Frequent — and More DangerousOfficials lowered the rate on the overnight reverse repurchase agreement facility relative to the lower bound of the target range by 5 basis points, according to their Wednesday policy statement. Taken together wi

  • Dec 18, 2024

Focus on relationships is the key to navigating market downturns

Zach Jecklin of Echo Global Logistics discusses the importance of providing good service through difficult freight markets, Echo’s strategy to leverage AI and how technology can help maintain relationships without eliminating human oversight. The post Focus on relationships is the key to navigating market downturns appeared first on FreightWaves.

  • Dec 18, 2024

Fed cuts reverse repo rate by wider margin than funds rate target

The Federal Reserve adjusted a key part of its rate control toolkit on Wednesday, lowering the rate it offers on its reverse repo facility by more than it cut the federal funds rate. The Fed said that the reverse repo rate will now stand at 4.25% from its prior level of 4.55%, marking a 30 basis point easing, while it lowered the federal funds target rate range by a quarter percentage point to between 4.25% and 4.5%. Analysts believe the largely expected adjustment is a bid by the Fed to nudge cash out of a facility that’s widely viewed as a proxy for excessive liquidity in the financial system.

  • Dec 18, 2024

Fed policymakers project two quarter-point rate cuts next year

U.S. central bankers on Wednesday issued fresh projections calling for two quarter-point interest-rate cuts next year amid rising inflation, a forecast consistent with a wait-and-see approach come January as Donald Trump starts his second four-year stint in the White House. The Federal Reserve's latest quarterly summary of economic projections shows policymakers expect inflation by the Fed's targeted metric to end this year at 2.4% and 2025 at 2.5%. The fresh forecasts imply a shift to a far more cautious pace of rate cuts in the new year after Fed policymakers delivered a third straight reduction in short-term borrowing costs at the close of their Dec. 17-18 meeting.

  • Dec 18, 2024

Key Takeaways From Fed Decision to Cut Rate by Quarter Point

(Bloomberg) -- Here are key takeaways from the Federal Reserve’s interest-rate decision on Wednesday:Most Read from BloombergNYPD Car Chases Are Becoming More Frequent — and More DangerousFederal Open Market Committee votes 11-1 to lower benchmark rate by 25 basis points to target range of 4.25%-4.5%Cleveland Fed President Beth Hammack votes against decision in favor holding rates steady, the second such dissent since the Fed began lowering rates in September“Dot plot” of rate projections shows

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