The Australian sharemarket broke successive records on Thursday after the Federal Reserve issued a whopper 0.5 percentage point interest rate cut.
The US Federal Reserve has gone big with its rate cut – exposing the problems facing the Reserve Bank of Australia in its inflation fight.
The Federal Reserve has started its rate-cutting cycle with a bang as it tries to help keep the US out of a recession. That plan could be derailed by November’s election.
America’s central bank has cut US interest rates by half a percentage point. The move amps up the pressure on the Reserve Bank to cut rates in Australia.
When the Federal Reserve Board cuts US interest rates this week,Japan’s will be the only major central bank moving in the other direction. That could lead to more turbulence.
The Australian sharemarket closed at a record high on Tuesday as traders bet the US Federal Reserve would begin its monetary policy easing cycle this week by slashing 50 basis points off the current cash rate.
Uncertainty is in the air as the US Federal Reserve gets set to make its interest rates announcement.
With annual inflation easing in the US,financial markets have priced in a 25 basis point cut to the cash rate at the Fed’s next meeting this week – the last before the November presidential election.
Shemara Wikramanayake says Australian inflation is six months behind countries where rates have already been cut,but the economy is stronger in other areas.
Donald Trump and Kamala Harris have each rolled out reckless plans that will add to one of America’s biggest problems.
Nearly a month ago,Wall Street plunged in response to a shock set of US job figures. Overnight,the market plunged again,in expectation of more bleak numbers this week.