![]() “It generally should be seen as a good thing that they have different opinions. Divergent opinions at the Fed is simply a feature of the central bank during pivotal junctures such as right now. So, Fed officials are divided, but it doesn’t really matter. Also, how much the resumption of student loan repayments this month will ultimately weigh on spending is unknown, given the Biden administration has recently approved some debt relief. It’s just not clear whether inflation will slow further as employers continue to hire at a solid clip or whether the bond market’s sell-off will constrain the economy just enough to pull inflation down. To put it simply, Fed officials are divided because the economy’s future is riddled with many uncertainties. ![]() San Francisco Fed President Mary Daly said last week that “if we continue to see a cooling labor market and inflation heading back to our target, we can hold interest rates steady and let the effects of policy continue to work.” Meanwhile, Fed Governor Michelle Bowman said recently that she continues “to expect that further rate increases will likely be needed to return inflation to 2% in a timely way.” It takes around a year for the Fed’s actions to be felt across the economy. Some officials think the Fed must raise interest rates more to tame inflation, while others think the rate tightening that’s been done will continue to further ease rising prices. ![]() “ Federal Reserve Issues FOMC Statement, May 03, 2023.The Federal Reserve has a complicated decision to make during its next policy meeting, which is only a few weeks away.Īll Fed officials agree that inflation needs to be defeated in a timely fashion, but they disagree on whether the central bank has already done enough. “ Federal Reserve Issues FOMC Statement, March 22, 2023.”īoard of Governors of the Federal Reserve System. “ Federal Reserve Issues FOMC Statement, February 01, 2023.”īoard of Governors of the Federal Reserve System. “ Minutes of the Federal Open Market Committee: June 13–14, 2023,” Pages 3–7.īoard of Governors of the Federal Reserve System. “ Federal Funds Effective Rate.”īoard of Governors of the Federal Reserve System. “ Consumer Prices Up 9.1 Percent Over the Year Ended June 2022, Largest Increase in 40 Years.”įederal Reserve Economic Data (FRED), Federal Reserve Bank of St. “ Surveillance Special: Powell Takes the Sting Out of ‘Super Hawkish’ Skip.” “ Summary of Economic Projections: June 14, 2023,”. “ Federal Open Market Committee: Transcripts and Other Historical Materials.”īoard of Governors of the Federal Reserve System. “ Federal Open Market Committee: FAQs: What Is the Summary of Economic Projections?”īoard of Governors of the Federal Reserve System. “ Federal Open Market Committee: About the FOMC.”īoard of Governors of the Federal Reserve System. ![]() “ Here’s Everything the Federal Reserve Is Expected to Do Wednesday.”īaron's " News from the FOMC policy statement and interest-rate decision, as well as Chairman Jerome Powell's press conference."īoard of Governors of the Federal Reserve System. " Federal Reserve Meeting: Fed Leaves Rates Unchanged."ĬNBC. “ Federal Open Market Committee: Meeting Calendars, Statements, and Minutes (2018–2024).” This was largely expected, as this move gives the Fed additional time to evaluate if the current rates are managing to keep inflation at bay without hampering economic growth.īoard of Governors of the Federal Reserve System. Some Fed watchers remain concerned about more interest rate increases due to risks of bank failures, stock market instability, and global economic uncertainty.ĭuring the most recent FOMC meeting in September, interest rates held stead at 5.25%-5.50%.The consensus among market experts suggests that the Fed may introduce one more 25-basis-point rate hikes this year to moderate inflation to the Fed’s 2% target.Despite the pause in June, most analysts predicted the quarter-point rate hike at the July meeting, given the Fed’s commitment to maximum employment and price stability.The FOMC raised interest rates to 5.25%–5.50% at the July 2023 meeting, marking 11 rate hikes this cycle aimed at curbing high inflation.The Federal Open Market Committee (FOMC) held rates steady during their most recent meeting in September 2023.
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