Fed delivers risk management cut, markets hold gains
The Federal Reserve cut rates for a second time this year in a move best characterised as a “risk management” cut, as officials try to prevent nascent signs of a slowdown in labour markets from turning into a full-blown downturn. In a well-telegraphed and fully-priced decision, the Federal Open Market Committee voted along divided 10-to-2 lines to lower the target range for the federal funds rate to between 3.75 and 4.00 percent, with Trump appointee Stephen Miran dissenting from the majority in favour of a bigger move, while Jeffery Schmid elected to stay on hold. In the statement setting out...