Overview

The Federal Reserve lowered the target for its benchmark interest rate from 1% to between zero and 0.25% and said the rate was likely to remain “exceptionally low” for a while. The Fed said it would use “all available tools” to secure sustainable economic growth and stable prices. That may include purchases of longer-term government debt. Consumer prices in America fell by 1.7% in November, the biggest one-month decrease on record. Prices were 1.1% higher than a year earlier; as recently as July, the annual inflation rate was 5.6%. The value of retail sales declined by 1.8% in November, dragged down by a big drop in car purchases and by lower petrol prices. ... (link)