Fed cuts rates and makes further ‘technical adjustment’
Fed doesn’t see funding pressure episode having implications for its ability to control rates
The Federal Reserve reduced its policy rate today (September 18), but policy-makers were not all in agreement on the final decision.
The central bank also made a further “technical adjustment” to the tools it uses to influence its target rate.
The majority of voting Federal Open Market Committee members – seven out of 10 – voted to reduce its target range by 25 basis points to 1.75–2%. St Louis Fed president James Bullard, however, was in favour of a 50 basis point reduction, while Kansas Fed
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