Fed Talk

Fed staff drop US recession forecast, Powell says

I guess it's different this time...

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Fed Governor Waller agrees the central bank can ‘proceed carefully’ on interest rates

Fed Governor Christopher Waller told CNBC on Tuesday that “a hell of a good week of data” will buy the central bank some time on policy decisions.

While he was encouraged by the recent reports on where prices are trending, he said they also indicate that the Fed can afford to hold rates higher until it is sure inflation is on the run.

https://www.cnbc.com/2023/09/05/fed...-can-proceed-carefully-on-interest-rates.html
 
Major central banks are on the brink of peak rates — but the inflation battle might not be over

After the European Central Bank hiked interest rates to a record 4%, economists said they were likely to have peaked, with the question now being how long they will hold at this level.

The Federal Reserve and Bank of England are both expected to have at most one more hike in the cards, but to finish there.

However, inflation is not expected to reach the central banks’ 2% targets until 2025, meaning further pain for households and risks to the outlook.
https://www.cnbc.com/2023/09/18/cen...k-rates-but-inflation-battle-is-not-over.html
 
Here’s everything the Fed is expected to do Wednesday

There’s virtually no chance the U.S. central bank will choose to raise its benchmark borrowing rate when its two-day meeting concludes Wednesday.

The meeting will feature the Fed’s quarterly update on what it expects for a bevy of key indicators — interest rates, gross domestic product, inflation and unemployment.

There’s widespread belief the Fed will make sure the market knows that it shouldn’t make assumptions about what’s next.

https://www.cnbc.com/2023/09/19/heres-everything-the-fed-is-expected-to-do-wednesday.html
 
Fed leaves rates unchanged, says we can expect another small rate hike . 25% in the future.

“The Federal Reserve held interest rates steady at a 22-year high on Wednesday while signaling another rate hike will be needed later this year to bring inflation back to its 2% target.

The central bank maintained the range for its benchmark interest rate at 5.25%-5.5%, but held projections for interest rates to finish the year in a range of 5.5%-5.75%, implying one more rate hike this year.

Twelve members of the FOMC saw one more rate hike needed this year while seven members wanted to keep rates at current levels through year-end.”

More:

https://finance.yahoo.com/news/fede...gh-signals-one-more-hike-in-23-180117610.html


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Fed’s Waller says officials can ‘wait, watch and see’ before acting on interest rates

Federal Reserve Governor Christopher Waller on Wednesday indicated the central bank can afford to hold off on interest rate increases as it watches incoming data.

“I believe we can wait, watch and see how the economy evolves before making definitive moves on the path of the policy rate,” he said in prepared remarks for a speech in London.

https://www.cnbc.com/2023/10/18/fed...-and-see-before-acting-on-interest-rates.html
 
Stakes raised for Powell speech Thursday with 10-year yield on cusp of 5%. Here’s what he could say

Federal Reserve Chair Jerome Powell is set to deliver what could be a key policy address Thursday afternoon in New York.

“Higher for longer” on rates has become an unofficial mantra in recent days, and Powell is expected to join the chorus.

Markets largely expect the Fed to stay on hold with rates, but they will be looking to Powell for confirmation and clarification.

https://www.cnbc.com/2023/10/18/fed...key-speech-thursday-heres-what-to-expect.html
 
Powell says inflation is still too high and lower economic growth is likely needed to bring it down

“Inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said in prepared remarks. “We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters.”

“While the path is likely to be bumpy and take some time, my colleagues and I are united in our commitment to bringing inflation down sustainably to 2 percent,” Powell added.
https://www.cnbc.com/2023/10/19/pow...growth-is-likely-needed-to-bring-it-down.html
 
Here’s everything to expect from the Fed’s policy announcement Wednesday

There’s virtually no chance policymakers will make a move either way on interest rates when the Fed concludes its two-day meeting Wednesday.

What investors will watch, instead, are the signals that come from Chair Jerome Powell and the rest of the Federal Open Market Committee about where they’re leaning for the future.

There’s virtually no chance policymakers will make a move either way on interest rates.

https://www.cnbc.com/2023/10/31/her...om-the-federal-reserve-meeting-wednesday.html
 
Fed Chair Powell calls talk of cutting rates ‘premature’ and says more hikes could happen

Federal Reserve Chairman Jerome Powell on Friday pushed back on market expectations for aggressive interest rate cuts ahead.

“It would be premature to conclude with confidence that we have achieved a sufficiently restrictive stance, or to speculate on when policy might ease,” Powell said in a speech.

Powell said the current inflation levels are still “well above” the central bank’s goal.

Fed Chair Powell calls talk of cutting rates '''premature''' and says more hikes could happen
 
Here’s everything the Fed is expected to do Wednesday

What is likely to occur when the Fed session wraps up Wednesday is a policy turn away from aggressive rate hikes and toward plans for what happens next.

The Fed will update its projections on economic growth, inflation and unemployment. Chair Jerome Powell also will deliver his usual post-meeting news conference.

Traders in the fed funds futures space are pricing rate decreases to start in May 2024 and continue through the year. Strategists and economists on Wall Street see a more cautious approach.

Here'''s everything the Fed is expected to do Wednesday
 
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