Fed cuts key rate for first time in a decade
Fed acts to counter threats ranging from uncertainties caused by Trump’s trade wars to low inflation.
WASHINGTON >> The Federal Reserve cut its key interest rate Wednesday for the first time in a decade to try to counter threats ranging from uncertainties caused by President Donald Trump’s trade wars to chronically low inflation and a dim global outlook.
The Fed also repeated a pledge to “act as appropriate to sustain the expansion” — wording that the financial markets have interpreted as a signal of possible future rate cuts.
Stocks tumbled soon after the Fed issued its statement at 2 p.m. Eastern time. The Dow Jones Industrial Average, which had been nearly flat before the announcement, was off more than 300 points about an hour later just as Chairman Jerome Powell was holding a news conference. The reaction in the bond market was more muted.
The central bank reduced its benchmark rate — which affects many loans for households and businesses — by a quarter-point to a range of 2% to 2.25%. It’s the first rate cut since December 2008 during the depths of the Great Recession, when the Fed slashed its rate to a record low near zero and kept it there until 2015. The economy is far healthier now despite risks to what’s become the longest expansion on record.
The FTC alleged that Equifax didn’t make a patch in its network in 2017 after being alerted to the security vulnerability. As a result, people’s names, Social Security numbers, birth dates, mailing addresses and, in some instances, driver’s license numbers were exposed, putting people at risk of identity theft.
Without admitting guilt, Equifax has agreed to pay at least $575 million, with the total possibly reaching $700 million. The concessions in this settlement are better than usual, but still not enough.
Here’s what’s been offered and what I think consumers should have received.
Good: Equifax has agreed to provide adult consumers with at least four years of credit monitoring at all three major credit bureaus. Consumers get an additional six years of free credit monitoring but only of their Equifax credit report. In lieu of the credit monitoring, consumers can opt for a cash payment of $125. People who were minors in May 2017 are eligible for 18 years of free credit monitoring. Minors will also get at least four years of threebureau credit monitoring. The remainder will be the one-bureau (Equifax) monitoring.
Better: The additional six years should cover credit monitoring of all three major bureaus — Equifax, Experian and TransUnion. And why not provide the full 10 years of monitoring all at once? The data that was stolen in this breach is permanently out there for criminals to exploit.
Good: Equifax has agreed to pay U.S. consumers $25 an hour up to a maximum of 20 hours if they’ve had to deal with identity theft. For 10 hours or less, you simply need to describe your actions and time spent. For claims of more than 10 hours, you’ll have to show more proof.
The company will offer up to $20,000 for documented losses and expenses directly related to identity theft. Additionally, consumers who purchased Equifax credit monitoring or identityprotection products between Sept. 7, 2016, and Sept. 7, 2017, are entitled to a refund of up to 25% of the total paid.
Better: People who purchased identity-theft credit monitoring from Equifax in the year before the breach should have received a full refund.
Good: Consumers are eligible for at least seven years of free assisted identity-restoration services to help them deal with issues related to identity theft and fraud.
Better: Set up a dedicated customer-service line to walk people through freezing their credit files. All consumers are now able to place and remove a “security freeze” on their credit files for free. It’s far better than credit monitoring. With a freeze in place, potential lenders can’t see your files. This can better thwart identity thieves from using your financial information to open credit cards or take out loans in your name.
For now, take advantage of every single thing you’re entitled to in the settlement, which still has to be approved by a court. Go to equifaxbreachsettlement.com to file a claim. For more information, call 1-833-7592982.
This is our life now: Endless efforts to avoid being victimized because our personal data has been stolen. So any settlements reached ought to go as far as possible to ease our burden.