Main Topic: Federal Reserve officials express concern about inflation and suggest more rate hikes may be necessary.
Key Points:
1. Inflation remains above the Committee's goal, and most participants see significant upside risks to inflation.
2. The recent rate hike brought the federal funds rate to its highest level in over 22 years.
3. There is uncertainty about the future direction of policy, with some members suggesting further rate hikes and others cautious about the impact on the economy.
The majority of economists polled by Reuters predict that the U.S. Federal Reserve will not raise interest rates again, and they expect the central bank to wait until at least the end of March before cutting them, as the probability of a recession within a year falls to its lowest level since September 2022.
Federal Reserve Chairman Jerome Powell will likely provide updates on the central bank's stance on interest rates in the US during the Jackson Hole meeting, although an announcement regarding the end of interest rate hikes is less likely due to positive economic data and the potential risk of triggering another crisis.
Federal Reserve Chair Jerome Powell is expected to signal in his upcoming speech that the Fed plans to maintain its benchmark interest rate at a peak level for a longer period than anticipated, suggesting that any rate cuts are unlikely until well into next year, as the central bank aims to further slow borrowing and spending to reduce inflation.
The European Central Bank may raise interest rates for a 10th consecutive meeting on Thursday, but the decision is uncertain.
Traders and investors are betting that the Federal Reserve will hold interest rates steady at its September meeting, indicating a shift in the market's interpretation of good economic news, as it suggests the Fed may be close to pausing its rate hike cycle despite inflation being above target levels and potential headwinds in the economy.
Investors should focus on the Federal Reserve's decision on interest rate hikes and the market's biggest themes during the coming week, according to CNBC's Jim Cramer.
The stock market is currently stagnant and the key question is when the Federal Reserve will start cutting interest rates, as the market struggles when the Fed tightens monetary policy.
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 Federal Reserve is expected to announce a pause on interest rate hikes due to positive economic indicators and the likelihood of a "soft landing" for the economy, but future decisions will be influenced by factors such as the resumption of student loan payments and a potential government shutdown.
The Federal Reserve's upcoming meeting will focus on the central bank's expectations for key indicators such as interest rates, GDP, inflation, and unemployment, while many economists believe that the Fed may signal a pause in its rate-hiking cycle but maintain the possibility of future rate increases.
The Federal Reserve is expected to maintain steady interest rates at its two-day meeting, but investors will be focused on policymakers' economic forecasts, while metals prices remain mixed and U.S. stock markets anticipate the release of the Fed's policy projections.
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 indicated that interest rates will remain "higher for longer," potentially for at least three more years, in order to sustain economic growth and combat inflation.
The panel discusses the upcoming Fed comments, the market's expectation of no further rate hikes in September, and the impact of high interest rates on jobs, wages, and consumer spending.
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.
Investors are becoming increasingly concerned about sustained high interest rates, with the bond and foreign-exchange markets already showing signs of adjusting, and if stock markets do not follow suit, the coming months could be particularly challenging.
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.
Interest rates for certificates of deposit and high-yield savings accounts have increased significantly in recent years due to the Federal Reserve's rate hikes, but it is uncertain if rates will continue to rise or if they have reached their peak.
Two Federal Reserve officials, Raphael Bostic and Loretta Mester, expressed their beliefs that interest rates will remain high for an extended period of time due to the need for restrictive monetary policy and the strength of the US economy.
The Federal Reserve's decision to keep interest rates high for a longer period has sparked a debate among financial experts over the possibility of an impending recession.
The Federal Reserve will continue with its 'higher-for-longer' interest rate narrative unless there are signs of a slowdown in the consumer sector.
