![]() ![]() Noting the Fed will see two more inflation reports and two jobs reports before its next meeting in September, Powell said, "It's certainly possible we would raise (rates) again at the September meeting and it's also possible we would hold steady." "The labor market continues to be strong," he said, noting the Fed wants to bring supply and demand in the economy and labor market "into better balance." Otherwise, consumer prices could surge again. Another hike would have been less likely if the central bank had reverted to language in a prior statement that referred to “the extent to which additional policy firming may be appropriate,” Barclays said.Īt a news conference, Fed Chair Jerome Powell acknowledged inflation's slowdown in June but added that while it's "welcome, it's just one report, one month of data." He said the process of lowering inflation to the Fed's 2% goal "has a long way to go." That suggests another rate increase is likely in September or November, Barclays wrote in a note to clients last week. Is the Fed going to raise interest rates again? In a statement after a two-day meeting, the Fed repeated that “determining the extent of additional policy firming (rate increases) that will be appropriate” to lower inflation to the Fed’s 2% target will hinge on inflation as well as economic and financial developments, among other factors. The move nudged the federal funds rate to a range of 5.25% to 5.5%, the highest level in 22 years. WASHINGTON – Despite a recent pullback in inflation, the Federal Reserve raised its key interest rate by a quarter point Wednesday and signaled another hike is at least on the table, if not likely, in coming months amid a solid economy. ![]()
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