Fed cuts key rate
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The Federal Reserve is set to make its next interest rate decision today, even as a near-total blackout of federal economic data continues amid the government shutdown.The Labor Department, however, on Friday released one key report ahead of its meeting: the Consumer Price Index.
Stocks and bonds initially rallied after the central bank cut interest rates on Sept. 17, but began giving up those gains before Federal Reserve Chair Jerome Powell started his post-meeting press conference.
The Japanese yen tumbled against the U. dollar on Thursday after the Bank of Japan adopted a less hawkish tone than traders expected, while the greenback was boosted after Federal Reserve Chair Jerome Powell on Wednesday said a rate cut in December was not guaranteed.
The U.S. central bank is widely expected to cut interest rates for the second meeting in a row even though the government shutdown is obscuring officials’ view of the economy.