The Fed omitted key words from its latest rate-cut decision. Here’s what the 'act as appropriate' phrase means, and why it was left out.

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The Fed omitted key words from its latest rate-cut decision. Here’s what the 'act as appropriate' phrase means, and why it was left out.
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Investors view the phrase as a signal the bank is considering future cuts, and its omission hints at a pause to rate changes.

The Federal Reserve cut its key interest rate for the third time this year, but omitted"act as appropriate to sustain the current expansion" from its official statement. Investors view the phrase as a signal the bank is considering future cuts. Leaving out the phrase hints that the Federal Open Market Committee is pausing its streak of rate changes.

The Federal Reserve cut its key interest rate for the third time this year, but omitted"act as appropriate to sustain the current expansion" from its official statement. Investors view the phrase as a signal the bank is considering future cuts. Leaving out the phrase hints that the Federal Open Market Committee is pausing its streak of rate changes.

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