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
SEOUL, July 3 (Reuters) - South Korea will seek to invest 1 trillion won ($854.41 million) annually in developing home-grown materials and equipment used to produce micro-chips, a senior ruling party lawmaker said on Wednesday, after Japan tightened curbs on exports of some high-tech materials to the country.
Japan said on Monday it would tighten regulations on exports of materials used in smartphone displays and chips to South Korea amid a widening dispute over South Koreans who were forced to work for Japanese firms during World War Two.
"We are doing a preliminary feasibility analysis (on the investment)," Cho Jeong-sik from the Democratic Party told reporters after meeting with officials from the presidential office and government ministries to discuss a response to Japan's decision.
The export curbs could hamper production of South Korea's chip giants Samsung Electronics and SK Hynix as the two chemicals targeted are essential, analysts say.
Data firm IHS Markit said on Wednesday the Japanese trade restrictions against South Korea would add to global trade tensions. Asian exporters are already being strained by a prolonged slowdown in the global electronics sectors.
"A reduction or elimination in the availability of these materials will significantly impede the production of memory and other semiconductor chips, impacting major semiconductor manufacturers including Samsung Electronics and SK Hynix," Len Jelinek, executive director of semiconductor research at IHS Markit, said in a note.
Japan's industry minister said on Tuesday that its decision to tighten controls was not in violation of World Trade Organization (WTO), rebuffing South Korea's earlier claims.
Cho, the South Korean ruling party lawmaker, shrugged off criticism in local media that the is not laying out countermeasures swiftly. But he did not provide further details on the nature of the spending.
Shares in South Korean chip materials makers jumped after the government's spending plan was made public.
Shares of Ram Technology and Ocean Bridge , local firms producing chemicals used in chip manufacturing process, rose as much as 20% and 15%, respectively. ($1 = 1,170.4000 won) (Reporting by Ju-min Park and Heekyong Yang; additional reporting by Hyunjoo Jin and Hayoung Choi; Editing by Kim Coghill)