A signal we are entering a new phase of our economy and our recovery. I believe it is important for the country to recognise this progress because if we do not, progress made will remain locked in the fear of negative mindsets that dominate our economic outlook since the pandemic began. Investors are cheering the federal reserve s rate cut. Here in asia, japan s nikkei 225 index added around 1. 5% in early friday trading. Us stock markets have also jumped, with the dowjones industrial average and s&p 500 rising to new all time highs. The bbc s ritika gupta has more from new york. Us stocks reached a fresh try and the 500 rose 17% extending the year again to 20% and the dowjones surged over 200 points topping 42,000 for the first time in the majority of industry groups closed out the session higher and big tech outperform dusty rate spurred investors to investors to return to a risk on mood and tesla gained 4%. Stocks traditionally tied to economic growth also jumped traditionally tied
Bumper cut the Federal Reserve slashes the cost of borrowing by half a Percentage Point. We take a look at what this says about the us economy. And the Bank Of England are minutes away from telling us whether theyre cutting rates or not. Markets think theyre staying where they are. Welcome to business today. We start in the us, and a big move by the Central Bank in cutting the cost of borrowing for the first time in overfour years. The Federal Reserve have dropped the main Interest Rate in the worlds biggest economy by half a Percentage Point bringing it down to between 4. 75 and 5 . A drop larger than many expected with some wondering now if this reflects the scale of the problems facing the american economy or the success in getting the pace of price rises, inflation, close to the banks targets. The governor of the fed Jerome Powell says the us economy is in good shape and they intend to keep it that way. Our North America Business correspondent Ritika Gupta has the details. The Fede
I m ritika gupta. Welcome to business today, live from New York, us shares have made a strong start this thursday as investors wrap their heads around Thatjumbo Half Percent cut in Interest Rates from the Federal Reserve and later comments from chairjerome powell. Was it a Panic Measure in response to a sharp slowdown in the economy . Traders remember similar moves just before the Dotcom Crash the Global Financial Crisis and the pandemic. Well, in his Press Conference Mr powell was keen to dispel any such negative thoughts. The us economy is in a good place and our Decision Today is designed to keep it there. More specifically the economy is growing at a solid pace. Inflation is coming down closer to our 2 objective over time and the Labour Market is still in solid shape. Our intention is really to maintain the strength that we currently see in the us economy. Lets bring in steven schoenfeld, ceo of financial Data Provider marketvectors here in New York. We see equities rallying today.
Caution at the Bank Of England. It keeps Interest Rates on hold but the governor tells us they are optimistic that Borrowing Costs are on the Path Down. Over on Wall Street though the party is back on. Shares hit a new Record High as the fed says the economys in a good place despite Itsjumbo Rate cut billion dollar breaks Australias Economy rides a wave of interest in surfing. It is the government fully with the sport . All those puns to come a little later in the programme. We start here in the uk where the bank of England Governor Andrew Bailey has said Interest Rates are now gradually on the Path Down despite the Banks Decision to keep the cost of borrowing on hold today. The banks main rate was left at 5 after it was cut last month for the first time in more than four years. The bank ratcheted up Interest Rates to try and control inflation which hit a peak of 11. 1 back in 2022. Since then inflation has been brought down significantly its sitting just above the banks target curre
bring down inflation or ease up on the fight to calm the banking sector. downplayed the federal reserve through all of this. we started out the sa santa clas by bringing zero interest rates which pushed people out of saved investments into venture capital. they became the arsenate dome arsenate during covid m no one would loan it to us the $5 trilf thin air and that caused inflation. but don t worry, they came in as the firefighters to put the fire out by dousing it with high interest rates. now, they are like the triage doctor to stabilize the patients, which are the banks. ashley: alexandria hoff with more from washington, alex. good morning, the federal reserve is in a tricky spot with rising consumer prices being revealed today. it has led to a rate hike but giving the turmoil the interest rates have caused the fight against inflation may have to be placed on hold. it was an attempt by silicon valley to lower interest rate risk which led to selling off securities we