Fed reserve next meeting7/24/2023 ![]() ![]() There also was talk about "elevated valuations" across asset classes, with some members worrying that easy Fed policy was raising prices and threatening financial stability. Futures contracts tied to the fed's benchmark interest rate are pricing in about a 50% chance of a rate hike in November 2022 and a 69% chance of an increase the next month. Federal Reserve will deliver a final 25-basis-point interest rate increase in May and then hold rates steady for the rest of 2023, according to economists. While the market is expecting tapering soon, it still doesn't see interest rate hikes coming at least for another year or so. However, the minutes noted substantial differences of opinion, with some members even worried that inflation could go back into a downward drift if Covid cases keep rising and potentially dampening economic growth. Those worried about inflation said tapering should start "relatively soon in light of the risk that the recent high inflation readings could prove to be more persistent than they had anticipated." Some members noted "upside risks to inflation," in particular that conditions Fed officials have labeled as transitory might last longer than anticipated. Officials judged that "uncertainty was quite high" about the outlook, with the Covid-19 delta variant posing one challenge and inflation another. The post-meeting statement painted a generally upbeat look on the economy, but the minutes noted some misgivings. ![]() Markets briefly rebounded after the minutes' release but then turned negative again, with the Dow Jones Industrial Average down more than 150 points. However, committee members broadly agreed that employment has not met the "substantial further progress" benchmark the Fed has set before it would consider raising rates.Īddressing interest rate concerns, committee members also stressed the need to "reaffirm the absence of any mechanical link between the timing of tapering and that of an eventual increase in the target range for the federal funds rate."įed officials have said repeatedly that tapering will happen first, with interest rate hikes unlikely until the process has been completed and the central bank isn't growing its balance sheet anymore. "Looking ahead, most participants noted that, provided that the economy were to evolve broadly as they anticipated, they judged that it could be appropriate to start reducing the pace of asset purchases this year," the minutes stated, adding that the economy had reached its goal on inflation and was "close to being satisfied" with the progress of job growth. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
0 Comments
Leave a Reply. |