The Federal Reserve will likely announce it is holding interest rates at a 22-year high on Wednesday, as it looks to tackle inflation without damaging the resilient US economy.Analysts and traders parsing recent Fed speeches overwhelmingly expect the US central bank to hold...
The Federal Reserve will likely announce it is holding interest rates at a 22-year high on Wednesday, as it looks to tackle inflation without damaging the resilient US economy.
Interest rate hikes slow down inflation by raising the cost of borrowing from the bank, which dampens economic activity and weakens the labor market. In fact, resilient consumer spending fueled higher-than-expected annualized growth of 4.9 percent in the third quarter, building on positive growth in the first half of the year."I always say it is a mistake to bet against the American people," President Joe Biden said in a statement Thursday, shortly after the latest GDP figures were released.
Whereas the Fed's key short-term rate mainly affects the borrowing rates offered by banks, Treasury yields determine "everything from mortgage rates to corporate and municipal bond yields," KPMG Chief Economist Diane Swonk wrote in a recent note to clients. Earlier this month, Fed Chair Jerome Powell said the current policy stance is "restrictive," suggesting monetary policy was working to put "downward pressure on economic activity and inflation."And Philadelphia Fed President Patrick Harker said he believed the Fed was "at the point where we can hold rates where they are.
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.
XAU/USD outlook: Bulls hold grip but may pause again under $2000 barrierGold keeps firm bullish tone and is on track for third weekly gain though the action remains capped just under psychological $2000 barrier. Growing un
Read more »
– Will BoJ steal the limelight from Fed and BoE?Fed pause likely to be of little relief for yields Just a few weeks ago the November FOMC meeting was seen as a live one, but expectations of a rate
Read more »
The ‘Fantastic Beasts’ Franchise Is “Taking a Pause”According to director David Yates, the ‘Harry Potter’ spin-off franchise is “parked” for the time being.
Read more »
Brain injury expert says important changes still needed to law defining death despite reform pauseAfter surveying the views expressed by 41 advocacy, medical, and transplant-focused organizations on the Uniform Determination of Death Act, a brain injury expert is calling for much-needed reforms to the legal definition of death in the United States.
Read more »
Ivy League Mega-Donors Hit Pause Amid Israel FalloutBillionaire captains of industry who've donated hundreds of millions of dollars to their Ivy League alma maters are halting or reconsidering their donations amid the Israel-Hamas chaos on college campuses, the New York Post reports.
Read more »
Israel rebuffs allies’ calls to ‘pause’ Gaza assault in first open disagreementIsrael is rejecting calls for respite in Gaza as its closest allies in the West have coalesced around the idea of 'humanitarian pauses', or temporary stops to the bombardment.
Read more »