FT News Briefing Thursday, September 19
Sep 19, 2019
Justin Trudeau faces scrutiny as he apologizes for a past brownface incident revealed by a yearbook photo. Meanwhile, Cisco's CEO reassures that the U.S.-China trade relations will stabilize, while KPMG UK prepares for staff reductions amid cost-cutting measures. FedEx struggles with its lowest sales growth in a decade, prompting market concerns. In a bold move, the Federal Reserve cuts interest rates, stirring discussions on economic stability and the implications of low bank reserves. It's a whirlwind of accountability, corporate shake-ups, and financial insights!
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Fed Interest Rate Cut
- The Federal Reserve cut U.S. interest rates by a quarter point, setting them at a range of 1.75% to 2%.
- They signaled a potential pause in further cuts, despite President Trump's calls for more aggressive action.
Fed's Cautious Approach
- The Federal Reserve, concerned about business investment and its potential impact on growth, opted for a cautious approach.
- Despite market expectations of further cuts, the Fed chose to wait and see, prioritizing stability amidst uncertainty.
Fed's Market Intervention
- The Fed is injecting billions into the short-term market due to lower bank reserves than in 2014.
- They acknowledge a 'plumbing problem' but are hesitant to commit to significant interventions, opting for minimal adjustments.