Fed Expected To Hold Rates Steady At November Meeting
The post Fed Expected To Hold Rates Steady At November Meeting appeared on BitcoinEthereumNews.com. Federal Reserve Chairman Jerome Powell speaks during a town hall meeting. Markets no longer expect … [+] the Fed to raise rates this November. (AP Photo/Mark Schiefelbein) Copyright 2023 Associated Press. All rights reserved Markets firmly expect the Federal Reserve to hold interest rates steady at their next meeting on November 1. This is in line with recent dovish comments from Fed officials and generally benign economic data. The recent rise in longer-term interest rates has also placated the Fed, as Governor Waller recently stated the Fed is inclined to “let the recent run-up on longer-term rates do some of our work”. A potential rate increase for December or later remains possible, but, for now, the Fed is happy with how the economy is trending and the Federal funds target is likely to remain at its current 22-year high of 5.25%-5.5%. Governor Waller’s Comments Fed Governor Christopher Waller gave a speech in the U.K. on October 18 that was generally positive in its assessment of the U.S. economy. Waller referenced “considerable progress” in the Fed’s management of inflation and noted a potential scenario in which, “we can hold the policy rate steady and let the economy evolve in the desired manner.” However, Waller noted that inflation will be watched carefully and if the economy does not cool somewhat and if “inflation appears to stabilize or reaccelerate”, Waller argued that “more action would be needed on the policy rate.” Still, there is perhaps a change of emphasis with the Fed not necessarily looking to raise rates again from here if the trajectory for inflation continues, whereas previously another rate increase was more likely than not, in the Fed’s view. Economic Data Recent economic data has been encouraging to the Fed. Most importantly inflation has eased. It is not back to the…
The post Fed Expected To Hold Rates Steady At November Meeting appeared on BitcoinEthereumNews.com.
Federal Reserve Chairman Jerome Powell speaks during a town hall meeting. Markets no longer expect … [+] the Fed to raise rates this November. (AP Photo/Mark Schiefelbein) Copyright 2023 Associated Press. All rights reserved Markets firmly expect the Federal Reserve to hold interest rates steady at their next meeting on November 1. This is in line with recent dovish comments from Fed officials and generally benign economic data. The recent rise in longer-term interest rates has also placated the Fed, as Governor Waller recently stated the Fed is inclined to “let the recent run-up on longer-term rates do some of our work”. A potential rate increase for December or later remains possible, but, for now, the Fed is happy with how the economy is trending and the Federal funds target is likely to remain at its current 22-year high of 5.25%-5.5%. Governor Waller’s Comments Fed Governor Christopher Waller gave a speech in the U.K. on October 18 that was generally positive in its assessment of the U.S. economy. Waller referenced “considerable progress” in the Fed’s management of inflation and noted a potential scenario in which, “we can hold the policy rate steady and let the economy evolve in the desired manner.” However, Waller noted that inflation will be watched carefully and if the economy does not cool somewhat and if “inflation appears to stabilize or reaccelerate”, Waller argued that “more action would be needed on the policy rate.” Still, there is perhaps a change of emphasis with the Fed not necessarily looking to raise rates again from here if the trajectory for inflation continues, whereas previously another rate increase was more likely than not, in the Fed’s view. Economic Data Recent economic data has been encouraging to the Fed. Most importantly inflation has eased. It is not back to the…
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