![]() ![]() "I don't see us getting back to 2% this year or next year," and when it does happen, it's likely to be in 2025, he said. Data since the Feds July policy meeting showed annual consumer inflation eased that month to 8.5 from 9.1 in June, a fact that would argue for the smaller 50-basis-point rate increase next month. Powell also said efforts to bring inflation back to target will take a long time. The Federal Reserves two-day meeting is the highlight of the week ahead, and the next catalyst for markets will be what clues it gives about future rate hikes. But he added, "I think there's a significant probability that there will be a downturn as well though, but it's not to me the most likely case." "The least unlikely case is that we do find our way to better balance without a really severe downturn," Powell said. "It's a constructive thing, that we've been able to raise rates 500 basis points with the expectation of going further, and we still have a very strong job market, but nonetheless one that is in fact cooling in just the way we would have hoped," Powell said.īut the Fed leader did not take off the table the possibility that Fed action, aimed at bringing inflation back to 2%, could bring some economic pain. economy has thus far been quite resilient in the face of Fed action, and the job market has fared surprisingly well. Board of Governors of the Federal Reserve System The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. The central bank leader also said that the U.S. The Federal Reserve Board of Governors in Washington DC. March 19-20: The Committee left the fed funds rate at 2.5. With rates at 4.5-4.75 today, the implication is that there. FOMC FED Meetings Schedule January 29-30: The FOMC left the fed funds rate at 2.5. "Although policy is restrictive, it's not, it may not be restrictive enough and it has not been restrictive for long enough," which leaves open the door for more increases, Powell said. On December 14, the Fed’s summary of economic projections indicated that policy-makers see rates for 2023 between 4.75 and 5.75.
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