![]() Federal Open Market Committee members indicate they expect the rate hikes to have consequences. Powell and his colleagues have emphasized in recent weeks that it is unlikely rate cuts will happen next year, as the market had been pricing. The "dot plot" of individual members' expectations doesn't point to rate cuts until 2024. That implies a quarter-point rate hike next year but no decreases. Along with the massive rate increases, Fed officials signaled the intention of continuing to hike until the funds level hits a "terminal rate," or end point, of 4.6% in 2023. ![]() The only comparison was in 1994, when the Fed hiked a total of 2.25 percentage points it would begin cutting rates by July of the following year. The increases that started in March - and from a point of near-zero - mark the most aggressive Fed tightening since it started using the overnight funds rate as its principal policy tool in 1990. "The FOMC is strongly resolved to bring inflation down to 2%, and we will keep at it until the job is done." "My main message has not changed since Jackson Hole," Powell said in his post-meeting news conference, referring to his policy speech at the Fed's annual symposium in August in Wyoming. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower ![]() Best Debt Consolidation Loans for Bad Credit ![]()
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