Post by account_disabled on Feb 22, 2024 2:33:30 GMT -5
The Federal Reserve will keep its benchmark interest rate at a 22-year high on Wednesday but signals it remains willing to tighten monetary policy further as it debates how much further to tighten the U.S. economy. The Federal Open Market Committee is expected to forgo an interest rate hike after its latest two-day meeting, keeping the federal funds rate between 5.25 percent and 5.5 percent and affirming the bank's strategy. central bank to proceed more carefully at such a late stage in its historic fight against inflation. Since March 2022, the Federal Reserve has waged one of the most aggressive campaigns to stifle consumer and business demand in decades in a battle against price pressures that have proven far more persistent than expected.
Wednesday's decision will come as the Federal Reserve releases a new set of individual economic projections from officials, which are expected to show growth is stronger than forecast in the last Pakistan Phone Number projections released in June, as well as broad support for that rates reach a maximum of between percent. That translates to an increase of more than a quarter point this year. But further tightening by the Federal Reserve is far from guaranteed. Officials are increasingly focused on the downside risks facing the world's largest economy, even as they remain alert to the threat of high inflation taking hold. Officials are also aware that the impact of months of higher interest rates may only now be becoming visible, as in the cooling of the Labor market. New obstacles to growth have also emerged, including the resumption of student loan payments, an unresolved auto workers strike and a looming government shutdown.
Officials are weighing those concerns with data showing that demand in many sectors remains strong, driving strong consumer spending and potentially preventing inflation from falling to the central bank's long-standing 2 percent target. Recommended A rise in oil prices stemming from recent supply cuts has also caused concern, amid fears it could raise the costs of a wider range of goods and services. While traders in federal funds futures markets generally believe the Federal Reserve will keep rates at current levels well into 2024, most top academic economists recently surveyed by the Financial Times and the Booth School of Business at the University of Chicago thought the central bank had more work to do. to push back inflation. Most economists surveyed believe another quarter-point rate hike is on the cards, and another large cohort expects the Federal Reserve to pursue two or more increases of that size. Most respondents believe the Federal Reserve will not make its first rate cut until the third quarter of next year or later.
Wednesday's decision will come as the Federal Reserve releases a new set of individual economic projections from officials, which are expected to show growth is stronger than forecast in the last Pakistan Phone Number projections released in June, as well as broad support for that rates reach a maximum of between percent. That translates to an increase of more than a quarter point this year. But further tightening by the Federal Reserve is far from guaranteed. Officials are increasingly focused on the downside risks facing the world's largest economy, even as they remain alert to the threat of high inflation taking hold. Officials are also aware that the impact of months of higher interest rates may only now be becoming visible, as in the cooling of the Labor market. New obstacles to growth have also emerged, including the resumption of student loan payments, an unresolved auto workers strike and a looming government shutdown.
Officials are weighing those concerns with data showing that demand in many sectors remains strong, driving strong consumer spending and potentially preventing inflation from falling to the central bank's long-standing 2 percent target. Recommended A rise in oil prices stemming from recent supply cuts has also caused concern, amid fears it could raise the costs of a wider range of goods and services. While traders in federal funds futures markets generally believe the Federal Reserve will keep rates at current levels well into 2024, most top academic economists recently surveyed by the Financial Times and the Booth School of Business at the University of Chicago thought the central bank had more work to do. to push back inflation. Most economists surveyed believe another quarter-point rate hike is on the cards, and another large cohort expects the Federal Reserve to pursue two or more increases of that size. Most respondents believe the Federal Reserve will not make its first rate cut until the third quarter of next year or later.