Central Banks
Fed Opens Up Policy Space Around the World Without Feeding Panic
- Half-point Fed cut exceeded most economists’ forecasts
- Powell sees US economy and labor market in solid shape
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The Federal Reserve’s bold start to cutting interest rates and its determination not to fall behind the curve in easing has reshaped the policy horizon for counterparts spanning the globe.
In Europe and most other developed nations — where officials tend to insist that decisions in Washington don’t affect their own policy trajectory — comfort might be taken in Fed Chair Jerome Powell’s declaration Wednesday that the US economy remains in good shape.