Wall Street was muted today, with futures for the S&P 500 and the Dow Jones Industrial Average little changed following a series of key interest rate decisions last week by the U.S. Federal Reserve, the Associated Press reports.
Last week the Fed cut its main interest rate for the first time in more than four years, with more cuts likely to come, ending a long run where it kept that rate at a two-decade high in hopes of slowing the U.S. economy enough to stamp out high inflation. Inflation has subsided from its peak two summers ago, and Chair Jerome Powell said the Fed can focus more on keeping the job market solid and the economy out of a recession.
The Fed is still under pressure because hiring has begun to slow under the weight of higher interest rates. Some critics say the central bank waited too long to cut rates and may have damaged the economy.
Critics also say the U.S. stock market may be running too hot on the belief the Federal Reserve will pull off what seemed nearly impossible earlier: getting inflation down to 2% without creating a recession.
This week will bring preliminary reports on U.S. business activity, the final revision for how quickly the economy grew during the spring, and an update on spending by U.S. consumers.
In other dealings early today, U.S. benchmark crude oil lost 12 cents to $70.88 per barrel. Brent crude, the international standard, gave up 8 cents to $74.41 per barrel.
The dollar was trading at 143.56 yen.
