The CPI rose 2.1% in November on a year-on-year basis but the Fed "doesn’t expect inflation to sharply exceed its 2% goal anytime soon."
The banks' diminished ability to supply funding at short notice could have "amplified the repo rate reaction" in September, a report says.
The 266,000 jobs gain shows the labor market "is continuing to provide the key foundation for the U.S. economy.”
"Inflation needs to accelerate noticeably for the Fed to consider raising interest rates, and that doesn’t appear to be in the cards."
“We took this step to help keep the economy strong in the face of global developments and to provide some insurance against ongoing risks."
The bank's CFO pointed to loan and deposit growth in the third quarter as evidence of strong fundamentals.
Another cut in December is "contingent upon an escalation in trade tensions, further weakness in global growth, and increased geopolitical tensions."
“There are no recent precedents to guide any policy response to the current situation," the Federal Reserve chairman warns.
They're particularly cheerful about the outlook for funding costs, given the recent cut in interest rates.
Sales increased 0.7% in July, "a reassuring sign for a U.S. economy that’s facing mounting hurdles."
The July inflation readings reduce "the chances that the U.S. central bank would cut rates by half a percentage point" in September.
The housing market continues to struggle despite lower mortgage rates.
