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2:30.
EDWARD LAWRENCE LIVE AT THE
FEDERAL RESERVE.
REPORTER: THE FEDERAL RESERVE
CUTS BENCHMARK RATE A QUARTER OF
A PERCENTAGE POINT.
THE FEDERAL FUNDS RATE IS 1.75%
TO 2%.
FED OFFICIALS ARE NOT
FORECASTING A RATE CUT THIS
YEAR, ANOTHER RATE CUT THIS
YEAR.
THEY'RE ALSO NOT FORECASTING ANY
RATE CUTS IN 2020.
THEY'RE SEEING A RATE HIKE IN
2021.
A VERY DIVIDED FED OVER THE
FUTURE PATH OF RATES.
THEE FED MEMBERS HAVE DISSENTED
ON THIS.
NEIL: JAMES BULLARD, ESTHER
GEORGE AND ERIC ROSENGREN
DISSENTED.
BULLARD WANTED TO SEE A 50 BASIS
POINT CUT.
ROSENGREN AND GEORGE WANTED TO
LEAVE THE RATES WHERE THEY WERE.
SEVEN OFFICIALS SEE ONE MORE
RATE CUT THIS YEAR.
THEY NEEDED TWO MORE TO HAVE
EXTRA RATE CUT.
FIVE OFFICIALS BELIEVE THE
FEDERAL FUN RATE SHOULD BE AT
SAME RATE.
FIVE WOULD LIKE TO SEE THE RATE
AT LEVEL IT WAS BEFORE THIS
MEETING TODAY.
NOW THE FEDERAL RESERVE RAISES
THE GDP FORECAST TO 2.2% THIS
YEAR.
ALSO SEE THE UNEMPLOYMENT RATE
NUDGING UP TO 3.7% BY THE END OF
THE YEAR.
CORE INFLATION THEY DO BELIEVE
STAYS THE SAIL AT 1.8% BY THE
END.
YEAR.
IN THE STATEMENT EVERYTHING WAS
BASICALLY THE SAME THERE EXCEPT
THEY ADDED THE FIXED BUSINESS
INVESTMENT AND EXPORTS HAVE
WEAKENED, CHANGING FROM SOFT,
FEDERAL RESERVE SAYS THEY WILL
ACT AS APPROPRIATE TO STAY IN
EXPANSION.
NOW ON THE SHORT-TERM FUNDING
COSTS THAT YOU WERE TALKING
ABOUT, CHARLES, THE FEDERAL
RESERVE LOWERED INTEREST ON
EXCESS RESERVES.
LOWERED INTEREST ON EXCESS
RESERVES BY 30 BASIS POINTS.
THE FEDERAL RESERVE SETS IT 20
BASIS POINT UNDER THE TOP RANGE
OF THE FEDERAL FUNDS RATE.
THEY WILL CONTINUE THE OVERNIGHT
REPO OPERATIONS TO STABLIZE THE
FEDERAL FUNDS RATE.
THEY SET THE RATE ON THE
OVERNIGHT REPOS FIVE POINTS
UNDER THE BOTTOM, 1.7% TO KEEP
IT WITHIN THE FEDERAL FUNDS RATE
RANGE.
THE FEDERAL REPO OPTIONS ARE
BELOW MEDIAN RATE AT 1.7.
RATE CUT, 25 BASIS POINTS 1.75
TO 2%.
THREE DISSENTS.
THE LAST TIME THAT HAPPENED IN
2016, DECEMBER OF 2016.
CHARLES?
CHARLES: EDWARD REAL QUICK THEY
RAISED GDP TO 2%.
REPORTER: YES.
CHARLES: FROM WHERE?
>> 2.1%.
A SMALL INCREMENTAL INCREASE.
INTERESTING WE HAD DISSENT IN
DIFFERENT DIRECTIONS.
IT SHOWS A VERY DIVIDED FED.
LAST TIME THEY HAD DIFFERENT
DIRECTIONS IN DISSENTS
DECEMBER 2014 ONE GOING ONE WAY,
ONE GOING THE OTHER WHICH IS