Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
The interest on excess reserves now stands at 1.8%, a 30 basis point cut compared with the 25 basis point reduction for the benchmark funds rate.The Fedread more
The decision to cut rates followed a monthslong pressure campaign by Trump, who often criticized Chairman Jerome Powell by name as he called for lower interest rates.Politicsread more
Stocks traded lower on Wednesday as traders digested the Federal Reserve's latest decision on U.S. monetary policy.US Marketsread more
The Federal Reserve dialed up its growth expectations slightly while keeping its inflation projection unchanged.Marketsread more
This is a comparison of Wednesday's FOMC statement with the one issued on July 31 after the Fed's previous policymaking meeting.The Fedread more
Ahead of the Fed's 2 p.m. announcement, many economists were forecasting one further cut in 2019, but some investors were hoping for two more this year.The Fedread more
The Fed has become increasingly divided, with three officials voting against the Fed's quarter-point cut to the fed funds target rate range.Market Insiderread more
For consumers, lower rates do mean cheaper loans, which can impact your mortgage, home equity loan, credit card, student loan tab and car payment. n the flip side, you'll earn...Personal Financeread more
Gold edged lower on Wednesday but held about the key $1,500 per ounce level after the U.S. Federal Reserve decided to cut interest rates.Futures & Commoditiesread more
If President Donald Trump decides to slap tariffs on the remaining billions of dollars worth of Chinese goods, Apple may need to raise iPhone prices significantly to offset the higher costs of parts, according to Wall Street analysts.
"We estimate a price increase of around 14% is required to absorb the impact of a 25% tariff, keeping margin dollars for all players in the supply chain constant," J.P. Morgan said in a note to clients Tuesday.
The bank broke down the costs of making and selling the iPhone XS with no tariffs, which is about $1,000, versus what it would cost if a 25% tariff hits China-made parts. That would take the iPhone's retail price up to $1,142, the firm calculates.
Although Trump has not decided to slap tariffs on an additional $300 billion worth of Chinese goods, the Office of the U.S. Trade Representative formally began the approval process on Monday. The earliest the new tariffs could go into place would be June 24.
Moving iPhone production exclusively to America is an option for Apple, Bank of America Merrill Lynch said Tuesday. The bank estimates a 20% price increase to the iPhone if 100% of the phone is manufactured in the U.S.
"We estimate the incremental cost of manufacturing iPhones in the U.S. could be 15-25%, and, if passed on to consumers could lead to demand destruction, in our view," the Bank of America said in a note.
But J.P. Morgan said Apple is more likely to absorb the cost of tariffs and take a hit on its earnings rather than raise the price of the phone. The bank estimates a total iPhone gross margin decrease of 4% if Apple doesn't pass the tariff costs on to customers.
Apple's stock is down more than 11% since the start of the trade war on May 2.
— With reporting by Michael Bloom.