The shift in Fed policy has posed a major problem for the equity market, because those high valuations have been premised on the assumption that low interest rates will last forever. Now markets are expecting the Fed to begin raising rates soon from the current record-low level of near zero...
While the Fed's stance on raising interest rates to curb inflation remains unchanged, the intensity of such hikes could be adjusted, he said, expecting the rate hike to be reduced to 0.25 percent at the March policy meeting. Yasuya Ueno, chief market economist at Mizuho Securities, pointed ...
"This is particularly the case since the Fed has not only created an inflation problem, it has also caused an equity, housing and credit market bubble. There has to be the risk that once the Fed starts raising interest rates in earnest, we will see those bubbles bursting and that bursting...
Beginning this year, the Fed has slowed the pace of rate hikes, raising rates by 25 basis points at each of its past three meetings. After the May meeting, the target range for the federal funds rate was 5 to 5.25 percent. "Holding the target range steady at this meeting allows the C...
With the decision to hold the line on rates, the committee noted a "lack of further progress" in getting inflation back down to the central bank's 2% target.
It's been two years since the Federal Reserve first raised interest rates in this latest cycle, and the move has had a significant impact on consumers' wallets. Since the Fed began raising rates in March 2022, borrowers have had to shell out more in interest expenses. During the week of ...
Powell also underscored that the Fed’s policymakers believe they are done raising rates, which are probably high enough to restrain the economy and inflation. He stressed that the Fed’s rapid rate hikes in 2022 and 2023 haven’t led to higher unemployment. A...
Traders are now pricing in more than an 80% chance of a hefty half-point rate jump when policymakers meet next month "If we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so...
FORECASTERS SEE FED RAISING INTEREST RATESJOHN D. McCLAIN Associated Press
After raising rates by a historic three-quarters of a point in four consecutive meetings, the Fed raised by a half point, then a quarter point, and paused. That’s because inflation is moderating as a response to that shock to the system. But Powell suggested that the Fed will probably...