FOMC

The FOMC voted to cut the target range 25 basis points to 1.75% to 2% as “uncertainties” offset prospects for “sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective.”

U.S. money markets showed some signs of calm as the Federal Reserve injected another $75 billion of liquidity and key rates pulled back from troubling levels.

Few deals priced, as trading was subdued before the Federal Open Market Committee’s interest rate decision.

A rate cut alone probably won't avert a recession. A rate cut combined with a ceasefire in the trade war might, according to one market strategist.

The Federal Open Market Committee meeting featuring the release of a new Summary of Economic Projections should give the market a better clue as to whether the expected rate cut is part of a mid-cycle adjustment or the second step in an easing cycle.

The Federal Reserve is likely to cut interest rates this week as its takes out some insurance to keep the U.S. economic expansion continuing in the face of geo-political uncertainty and a global slowdown.

With a tweet, President Trump has reopened the debate about negative interest rates.

Thomas Garretson, fixed income portfolio strategist at RBC Wealth Management, and Craig Bishop, lead strategist, U.S. fixed income strategies at RBC Wealth Management, discuss the upcoming Fed meeting, rate cuts, the divide among participants, the inverted yield curve, Fed independence, and recession. Gary Siegel hosts.

President Donald Trump urged the Federal Reserve to lower interest rates to a level typically reserved for recessions or periods of persistently weak growth, suggesting that such a setting could allow the government to restructure Treasury debt at a lower cost.

Fed still divided, but 25 basis point cut is a good bet.