Making it up as they go – that is a less generous way to describe the Federal Reserve's declared data-dependent policy in recent months. Giving Fed Ch
I expect Powell to keep the door open to another move, especially after the recent upbeat economic data.The Fed and investors are already looking at next year, when they expect lower inflation and a slower economy to trigger interest rate cuts.
Will the Fed's median rate remain at 4.6% in its new projection for 2024? I expect a small bump up, perhaps to 4.8%, which would scare investors. An unlikely decrease to 4.3%, as seen in the dot plot in March, would cheer markets. Circling back to the beginning of this preview, the almighty central banker will likely insist on being dependent on incoming economic data, opening the door to hiking or cutting rates as needed.
Here is one last hawkish chart. The most respected forward-looking indicator for the largest sector, the ISM Services Purchasing Managers' Index , also shows signs of bottoming out. It signaled accelerating growth with a score of 54.5 in August. The Federal Reserve is set to leave its rates unchanged, but it is also expected to signal one last move this year and slower cuts next year.
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Federal Reserve is poised to leave rates unchanged as it tracks progress toward a 'soft landing'Since Federal Reserve officials last met in July, the economy has moved in the direction they hoped to see: Inflation continues to ease, if more slowly than most Americans would like, while growth remains solid and the job market cools.
Read more »
Federal Reserve is poised to leave rates unchanged as it tracks progress toward a 'soft landing'Since Federal Reserve officials last met in July, the economy has moved in the direction they hoped to see: Inflation continues to ease, if more slowly than most Americans would like, while growth remains solid and the job market cools.
Read more »
Federal Reserve is poised to leave rates unchanged as it tracks progress toward a 'soft landing'Since Federal Reserve officials last met in July, the economy has moved in the direction they hoped to see: Inflation continues to ease, if more slowly than most Americans would like, while growth remains solid and the job market cools
Read more »
Federal Reserve is poised to leave rates unchanged as it tracks progress toward a 'soft landing'Since Federal Reserve officials last met in July, the economy has moved in the direction they hoped to see: Inflation continues to ease, if more slowly than most Americans would like, while growth remains solid and the job market cools.
Read more »
Federal Reserve is poised to leave rates unchanged as it tracks progress toward a 'soft landing'Since Federal Reserve officials last met in July, the economy has moved in the direction they hoped to see: Inflation continues to ease, if more slowly than most Americans would like, while growth remains solid and the job market cools
Read more »
Federal Reserve is poised to leave rates unchanged as it tracks progress toward a 'soft landing'Since Federal Reserve officials last met in July, the economy has moved in the direction they hoped to see: Inflation continues to ease, if more slowly than most Americans would like, while growth remains solid and the job market cools.
Read more »