The inflation figures and comments from officials such as Mester caused Wall Street traders to put the odds of a rate hike in June as high as 70% early Wednesday.īut Jefferson’s remarks, as well as similar comments by Harker, reversed traders’ expectations, with markets pricing in 65% odds of no hike in June later Wednesday afternoon. Excluding the volatile food and energy categories, core prices rose 4.7% from a year ago, also higher than the previous month. The projection for other FOMC announcement dates experienced a bit more volatility since the last meeting. The FOMC is anticipated to maintain rates in the range of 5.25 to 5.5 during its September meeting, pushing the first rate cut further down the road to May next year, a two-month extension from. The FOMC had raised the short-term federal funds rate 10. That is far above the Fed’s target of 2%. As for the next Fed meeting, it begins on September 19 and will end with a policy statement on September 20 at 2 pm Eastern. “I would see more of a compelling case for bringing (rates) up.”Īnd last Friday, a report showed that U.S inflation picked up to 4.4% in April, compared with a year ago, up from 4.2% in March, according to the Fed’s preferred inflation measure. “I don’t really see a compelling reason to pause - meaning wait until you get more evidence to decide what to do,” she said. What to expect from this week's Fed meeting CNN Business The Federal Reserve is expected to hold its benchmark lending rate steady this week as it waits for more data to understand how previous. ![]() ![]() Loretta Mester, president of the Cleveland Fed, expressed support for another hike in June during an interview published Wednesday in the Financial Times. The headline decision that the Fed will announce after its June 14 meeting is whether it will keep the level of the federal funds rate between 5 and 5.25 or raise it by 0.25 of a percentage. WASHINGTON Federal Reserve officials are committed to fighting inflation and expect higher. Tough talk on inflation from other Fed officials continued this week. Fed releases minutes from December meeting, officials see higher rates for ‘some time’ ahead.
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