ECB Cuts Rates Again Amid Weak Growth; Fed Pauses Rate Cuts
The ECB has lowered interest rates to 2.75%, while the Fed has maintained its rate, citing stable economic conditions.
Subscribe to unlock this story
We really don't like cutting you off, but you've reached your monthly limit. At just $5/month, subscriptions are how we keep this project going. Start your free 7-day trial today!
Get Started
The Federal Reserve's decision to maintain interest rates and its lack of clarity about future moves has left investors in a state of uncertainty, fostering skepticism about imminent rate cuts amid persistently high inflation.
Deciphering the Fed decision: Wall Street expects no cuts until at least June
CNBC·3M·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
With the economy showing resilience and inflationary pressures lingering, the Federal Reserve's decision to maintain higher interest rates underscores a cautious approach towards future monetary policy adjustments.
Fed hits pause on interest rate cuts for now
Fox Business·3M·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans RightThis outlet slightly leans right.
The European Central Bank's recent decision to cut interest rates further, alongside President Lagarde's insistence that the policy remains restrictive, underscores a concerning trend of weakening economic growth in the eurozone.
The Guardian·3M·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.Leans LeftThis outlet slightly leans left.
The decision to cut interest rates once again underscores the deeply rooted economic challenges within the eurozone, where stagnant growth and political instability are stifling recovery.
Europe cuts interest rates as economic growth stagnates
Axios·3M·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.The European Central Bank's decision to cut interest rates, while necessary, underscores the alarming stagnation in Europe's economy, lingering political instability in key nations like Germany and France, and the continued anxiety of wary consumers grappling with inflation.
European Central bank cuts benchmark rate by a quarter percentage point to boost stagnant economy
Associated Press·3M·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
Summary
The European Central Bank cut its key interest rate to 2.75%, marking its fifth consecutive reduction, as President Christine Lagarde acknowledged the eurozone's weak growth. Lagarde stated today that the ECB's policy remains 'restrictive,' which is hindering economic recovery. Meanwhile, the Federal Reserve maintained its rate at 4.5-4.75%, opting for a cautious approach due to strong economic indicators and above-target inflation. Chair Jerome Powell emphasized that the Fed doesn't need to rush into further cuts, predicting potential reductions could come as late as mid-year, depending on inflation trends and economic data.
Perspectives
No center-leaning sources available for this story.
History
- 3M