Inflation may be cooling — just not yet fast enough for the Federal Reserve
Chair Jerome Powell offered a nuanced view Wednesday of how the Fed intends to address its core challenge at a time when inflation is bothbut still well above the central bank's 2% target: Give it more time, and maybe some help from additional interest rate hikes.
how higher borrowing rates have affected inflation and the economy. They also want to see whether the collapse of three large banks this spring will weigh on lending and growth. Powell noted that many economists expect rental costs, a key driver of current inflation, to steadily decline in the coming months. He also said wage growth has slowed and noted some signs that the job market is cooling. Those factors, he added, should“I would almost say that the conditions that we need to see in place to get inflation down are coming into place,” Powell said. “But the process of that actually working on inflation is going to take some time.”, down sharply from a 9.
Still, Powell stopped short of saying the Fed's policymakers have committed to resuming their hikes when they next meet in late July. At one point in the news conference, he referred to Wednesday's decision as a “skip,” which would imply that the Fed planned to raise rates at the July meeting.
“With inflation set to moderate noticeably, we are skeptical that the Fed will resume hiking interest rates,” Ryan Sweet, chief U.S. economist of Oxford Economics, wrote in a note. “Our baseline forecast is for the Fed to remain on hold through the remainder of this year before gradually easing in early 2024.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed Chair Powell may try his best to make a July hike seem likely – CommerzbankUlrich Leuchtmann, Head of FX and Commodity Research, analyzes USD outlook ahead of FOMC. Currency market should not overlook the obvious contradictio
Read more »
Bitcoin stays flat at $26K after PPL data as markets await Fed’s PowellBitcoin traders hope Fed Chair Powell will be able to induce some BTC price volatility.
Read more »
WATCH LIVE: Federal Reserve Chair Jerome Powell holds a press conference | Fox Business VideoThe chairman discusses the U.S. central bank's decision on interest rates and its fight against inflation.
Read more »
Fed pauses interest rate hikes for the first time in 15 monthsFederal Reserve says it will not raise interest rates this month, making it the first time the Fed has decided to leave interest rates unchanged in 15 months.
Read more »
U.S. stocks typically climb on Fed days, but the trend is weaker under PowellHow might U.S. stocks react if the Federal Reserve leaves interest rates on hold when its June policy meeting concludes on Wednesday?
Read more »
WATCH LIVE: Jerome Powell holds press briefing on Fed interest rate decisionFederal Reserve Chairman Jerome Powell is holding a press conference to brief the public on the Fed's decision regarding interest rates.
Read more »