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 to 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
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
Stocks traded lower on Wednesday as traders digested the Federal Reserve's latest decision on U.S. monetary policy.US Marketsread 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
As the Federal Reserve lowers rates, some banks are pulling back their offerings on their savings accounts and certificates of deposit. Even so, they are still pretty good by...Personal Financeread more
Commerce Secretary Wilbur Ross predicted on Tuesday that the U.S. and China will successfully negotiate a trade deal.
"Eventually, this will end in negotiation," Ross said on CNBC's "Squawk Box." "Even shooting wars end in negotiations."
With questions circulating about whether President Donald Trump and Chinese leader Xi Jinping would meet on trade at the G-20 meeting later this month, the U.S. president told CNBC on Monday he would place additional tariffs on Chinese goods if Xi does not attend.
"The China deal is going to work out. You know why? Because of tariffs," Trump said in a "Squawk Box" call with CNBC's Joe Kernen. "Right now, China is getting absolutely decimated by companies that are leaving China, going to other countries, including our own, because they don't want to pay the tariffs."
Ross, who has spoken out in favor of Trump's tariff strategy, warned that trade deals are not made at summits. He said any talks between Trump and Xi would lay the groundwork for a possible agreement.
In May, Trump increased tariff rates on $200 billion worth of Chinese goods and threatened to put levies on another $300 billion, effectively the rest of China's imports in the United States.
An agreement with China would have to fix all the violations that the U.S. alleges, otherwise making a deal would not make any sense, said Ross, who before joining the White House, made a fortune in the investment world, running W.L. Ross & Co., and buying stakes in distressed assets.
"Either we will collect more and more tariffs on more and more products or we'll back an arrangement with them," Ross said, while warning investors not to get too "trigger happy" when Trump threatens tariffs.
After the president warned Mexico on May 30 that he would put a 5% tariff on all Mexican goods if they did not take actions to help curb undocumented migrants from coming into the U.S., Ross said that "people were getting hysterical" and the markets got "a little too jumpy." The day after the proposed tariffs were announced, the Dow Jones Industrial Average plunged more than 350 points.
"Judge this administration by results," Ross said. "Don't judge it by interim soundbites." Late Friday, the president called off the Mexico tariffs, saying the U.S. and Mexico agreed to follow through on earlier concessions it had made on immigration.
In Monday's CNBC interview, Trump said the deal came together in just two days because Mexico's leaders knew the alternative would have been worse.
"We got everything we wanted and we're going to be a great partner to Mexico now because now they respect us," Trump said. "They didn't even respect us. They couldn't believe how stupid we were with everything that's going on where somebody comes in from Mexico and just walks right into our country and we're powerless to do anything."