![]() Futures markets showed bets on the path of Fed rate increases over the remainder of the year were little changed, seeing small odds of a rise in September. Yields on both the two- and 10-year Treasury notes moved down modestly from levels right before the release of the Fed's policy statement, while U.S. "We'll be comfortable cutting rates when we're comfortable cutting rates, and that won't be this year," Powell said. ![]() "It is certainly possible that we would raise the funds rate again at the September meeting if the data warranted, and I would also say it's possible that we would choose to hold steady at that meeting" if that was the right policy call, Powell said in a press conference after the release of the policy statement.įILE - Federal Reserve Chairman Jerome Powell speaks during a news conference in Washington, May 3, 2023.īut Powell cautioned against expecting any near-term easing in rates. Though inflation data since the Fed's June 13-14 meeting has been weaker than expected, policymakers have been reluctant to alter their hawkish stance until there is more progress in reducing price pressures.įed Chair Jerome Powell said any future policy decisions would be made on a meeting-by-meeting basis, and that in the current environment officials could provide only limited guidance about what's next for monetary policy.īut he didn't rule out action if it was deemed necessary. "The Committee will continue to assess additional information and its implications for monetary policy," the Fed said in language that was little changed from its June statement and left the central bank's policy options open as it searches for a stopping point to the current tightening cycle.Īs it stated in June, the Fed said it would watch incoming data and study the impact of its rate hikes on the economy "in determining the extent of additional policy firming that may be appropriate" to reach its 2% inflation target. That level was last seen just prior to the 2007 housing market crash, and it has not been consistently exceeded on an effective basis for about 22 years. The hike, the Fed's 11th in its last 12 meetings, set the federal funds rate - the benchmark rate on overnight loans that banks charge each other - in the 5.25%-5.50% range. ![]() ![]() Federal Reserve raised a key interest rate by a quarter of a percentage point on Wednesday, citing still-elevated inflation as a rationale for what is now the highest U.S. ![]()
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