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Fed Holds Rates Steady as Inflation Cools, But Warns of Economic Slowdown

  • The Federal Reserve left interest rates unchanged at 5.25% - 5.50% as inflation shows signs of slowing down.

  • The Fed had raised rates aggressively over the past 18 months to curb high inflation that hit 40-year highs.

  • Inflation has cooled recently, with consumer prices up 3.7% in August versus 9.1% last year.

  • The Fed indicated the economy remains strong, but tighter credit may slow activity and inflation further.

  • The Fed's next rate decision is November 1, so September inflation data will be important in determining their next steps.

nbcnews.com
Relevant topic timeline:
The former president of the Boston Fed suggests that the Federal Reserve can stop raising interest rates if the labor market and economic growth continue to slow at the current pace.
US consumer spending increased by the most in six months in July, driven by strong demand for goods and services, but slowing inflation rates suggest that the Federal Reserve will keep interest rates unchanged next month.
The Reserve Bank of Australia is expected to keep its key interest rate unchanged at 4.10% as inflation slows, but economists anticipate a final hike in the next quarter.
The Federal Reserve is expected to hold interest rates steady this month, but inflation could still lead to additional rate increases.
The Federal Reserve is expected to maintain its benchmark interest rate and may not cut it until the second quarter of 2024 or later, according to economists in a Reuters poll.
The Federal Reserve is expected to maintain one more rate hike on the table in their updated forecasts, despite their growing faith in the prospect of an economic soft-landing.
Federal Reserve Chair Jerome Powell is expected to maintain a cautious approach and emphasize the Fed's resolve to target inflation and keep interest rates high for an extended period at next week's policy meeting, according to economists. The general consensus among economists is that the Fed will keep rates steady and suggest a possible rate hike later this year while closely monitoring inflation and the labor market.
The Federal Reserve is expected to keep its key interest rate steady in its upcoming meeting and provide insights on the duration of high interest rates.
The Federal Reserve is expected to keep interest rates unchanged at its upcoming meeting, but market participants will be closely watching for any hints regarding future rate cuts.
The US Federal Reserve is expected to hold interest rates steady in September while leaving the door open for possible rate hikes in the future, as it tackles inflation and assesses the health of the economy.
The Federal Reserve is expected to hold off on raising interest rates, but consumers are still feeling the impact of previous hikes, with credit card rates topping 20%, mortgage rates above 7%, and auto loan rates exceeding 7%.
The Federal Reserve is expected to keep interest rates steady and signal that it is done raising rates for this economic cycle, as the bond market indicates that inflation trends are moving in the right direction.
The Federal Reserve is expected to hold its benchmark lending rate steady while waiting for more data on the impact of previous rate hikes on the US economy, but there is still a possibility of another rate increase in the future.
The Federal Reserve is expected to keep its policy rate unchanged, but the revision of the dot plot and comments from Chairman Jerome Powell could impact the valuation of the US Dollar.
The Federal Reserve held off on raising interest rates at its September meeting, but economic activity and rising energy prices are likely to drive their decision in the next meeting.
The Federal Reserve has decided to pause interest rates while closely monitoring economic data, particularly unemployment and wages, as concerns about a potential recession and inflation remain.
The Federal Reserve's decision to leave interest rates unchanged means that savers and individuals with surplus cash have the opportunity to earn a higher return on their money than in recent years, with online banks offering high-yield savings accounts that can provide a return above inflation.
Central banks, including the US Federal Reserve, European Central Bank, and Bank of England, have pledged to maintain higher interest rates for an extended period to combat inflation and achieve global economic stability, despite concerns about the strength of the Chinese economy and geopolitical tensions.
The stock market showed a surprising reaction to the Fed's decision to keep interest rates unchanged, with expectations of a pause in rate hikes leading to selling in the market and a potential change in mood for investors.
The Federal Reserve is paying attention to "real" interest rates, which measures rates adjusted for inflation, and is using this to inform its decisions regarding future rate hikes and inflation.
The Federal Reserve left interest rates unchanged while revising its forecasts for economic growth, unemployment, and inflation, indicating a "higher for longer" stance on interest rates and potentially only one more rate hike this year. The Fed aims to achieve a soft landing for the economy and believes it can withstand higher rates, but external complications such as rising oil prices and an auto strike could influence future decisions.
The Reserve Bank of India is expected to maintain its policy rates at the upcoming monetary policy review meeting due to high retail inflation and the US Federal Reserve's hawkish stance.
J.P. Morgan strategists predict that the Federal Reserve will maintain higher interest rates until the third quarter of next year due to a strong economy and continued inflation, with implications for inflation, earnings, and equity valuations as well as potential impact from a government shutdown.
The Reserve Bank of India (RBI) is expected to keep the benchmark interest rate unchanged at 6.5% in its upcoming monetary policy review due to elevated inflation and global economic factors.
The Federal Reserve will continue to raise interest rates as inflation resurfaces, according to Wall Street investor Caitlin Long, with big corporations benefiting while other sectors of the US economy are already in recession.
The Federal Reserve is facing a tough decision on interest rates as some officials believe further rate increases are necessary to combat inflation, while others argue that the current rate tightening will continue to ease rising prices; however, the recent sell-off in government bonds could have a cooling effect on the economy, which may influence the Fed's decision.
The Federal Reserve is expected to keep interest rates higher for longer due to the potential inflation caused by rising oil prices amid the escalating war between Israel and Hamas, according to billionaire venture capitalist Chamath Palihapitiya.
The US Federal Reserve should proceed carefully when deciding whether or not to hike interest rates further to bring down inflation, according to two senior officials, as they aim for a "soft landing" to tackle inflation without harming the US economy.
Wall Street and policymakers at the Federal Reserve are optimistic that the rise in long-term Treasury yields could put an end to historic interest rate hikes meant to curb inflation, with financial markets now seeing a nearly 90% chance that the US central bank will keep rates unchanged at its next policy meeting on October 31 through November 1.
The Federal Reserve will continue with its 'higher-for-longer' interest rate narrative unless there are signs of a slowdown in the consumer sector.
The U.S. Federal Reserve is expected to keep its key interest rate unchanged on November 1 and may delay rate cuts until the second half of next year, according to a Reuters poll of economists.
Federal Reserve Chair Jerome Powell will deliver remarks in New York suggesting that interest rates will remain unchanged at the next meeting, despite uncertainty surrounding future rate decisions.