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How Fed Interest Rate Cuts Could Impact Natural Gas Infrastructure, Demand

Natural Gas Intelligence · last updated

Policymakers this week reduced the U.S. central bank’s benchmark interest rate by a quarter percentage point and signaled more cuts lie ahead to stave off a slumping job market and a slowing economy. The shift could reduce borrowing costs and hasten investments in energy-intensive projects that bolster natural gas demand.

Natural Gas Intelligence's (NGI) natural gas forward curve chart showing basis price forecasts for hubs key to the LNG market.

At A Glance:

  • Fed cuts key rate by a quarter point
  • Change may signal weaker economy
  • More reductions could spur spending