The Federal Reserve raised interest rates to their highest level in 22 years, but experts expect the market to react less dramatically than in the past.
Two Federal Reserve officials suggest that interest-rate increases may be coming to an end, but one of them believes that further hikes may still be necessary depending on inflation trends.
Federal Reserve Bank of Philadelphia President Patrick Harker does not believe that the U.S. central bank will need to increase interest rates again and suggests holding steady to see how the economy responds, stating that the current restrictive stance should bring inflation down.
Two Federal Reserve officials, Boston Fed President Susan Collins and Philadelphia Fed President Patrick Harker, suggested that the Fed may be nearing the end of interest rate increases, although Collins did not rule out the possibility of further hikes if inflation doesn't decline.
Top central bankers, including Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde, emphasized the importance of keeping interest rates high until inflation is under control while also grappling with economic challenges and uncertainties at the annual Federal Reserve gathering in Jackson Hole, Wyoming.
Federal Reserve Chairman Jerome Powell reiterated the central bank's commitment to raising interest rates and bringing inflation down, while also closely monitoring economic data and signaling the possibility of further rate hikes in the coming months.
The Federal Reserve is considering raising interest rates again in order to reduce inflation to its targeted levels, as indicated by Fed Governor Michelle W. Bowman, who stated that additional rate increases will likely be needed; however, conflicting economic indicators, such as job growth and wage growth, may complicate the decision-making process.
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.
Atlanta Federal Reserve Bank President Raphael Bostic argues against further U.S. interest rate hikes, stating that current monetary policy is already tight enough to bring inflation back down to 2% over a reasonable period and cautioning against the risk of tightening too much.
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 meeting this week, but investors will be paying close attention to any indications of future rate increases as the central bank continues its fight against inflation.
The Federal Reserve's decision to raise interest rates will continue to burden borrowers with higher bills on credit cards, student loans, car loans, and mortgages, while savers are rewarded with higher rates on savings accounts and certificates of deposit.
The Federal Reserve's plans for prolonged elevated interest rates may continue to put pressure on stocks and bonds, although some investors doubt that the central bank will follow through with its projections.
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.
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.
Two former Federal Reserve policymakers disagree on whether the central bank should raise interest rates, with one saying rates have likely peaked and the other saying they need to be raised further, but both agree that achieving a soft landing for the economy is unlikely.
The Federal Reserve's decision to hold interest rates and the possibility of rates remaining higher for longer may have triggered a sell-off in the US equities and cryptocurrency markets, with risk assets typically underperforming in a high-interest-rate environment.
The former Goldman Sachs chairman and CEO, Lloyd Blankfein, believes that the Federal Reserve may not need to keep interest rates high for an extended period, as cuts to rates could be on the horizon sooner than expected due to relatively subdued inflation, despite the tough rhetoric from top Fed officials.
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.
New York Fed President John Williams believes that the key U.S. interest rate is at or near the peak level, but borrowing costs must stay high for some time to ensure inflation is controlled and price stability is fully restored.
Rising interest rates, rather than inflation, are now a major concern for the US economy, as the bond market indicates that rates may stay high for an extended period of time, potentially posing significant challenges for the sustainability of government debt.
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.
Cleveland Fed President Loretta Mester believes another interest rate hike is likely, and rates could remain higher for an extended period depending on the strength of the US economy, with the focus shifting to how long rates will be held at current levels.
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.
Atlanta Federal Reserve president Raphael Bostic stated that given the slowing economy and falling inflation, there is no immediate need for the Federal Reserve to raise interest rates, but it will likely be a while before rate cuts are appropriate.
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 may not raise interest rates again this year due to an already uncertain political climate in Washington, as well as a cooling economy, slowing inflation, and potential negative impacts from high interest rates and a government shutdown.
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 Federal Reserve officials suggested that they may not raise interest rates at the next meeting due to the surge in long-term interest rates, which has made borrowing more expensive and could help cool inflation without further action.
Atlanta Federal Reserve Bank President Raphael Bostic believes that the U.S. central bank does not need to raise interest rates further, and he sees no recession on the horizon, despite the impact of previous rate hikes on the economy and inflation. Bostic also acknowledges the uncertainty created by the conflict between Israel and Hamas, but remains prepared for unexpected events.
Investors are betting that the Federal Reserve may not raise interest rates again due to recent market moves that are expected to cool economic growth.
The Federal Reserve officials were uncertain about the future of the economy and decided to proceed with caution in their interest-rate policy, weighing the risks of overtightening versus insufficient tightening. They were divided on the frequency of rate hikes, with a majority supporting one more increase, but some feeling that the policy rate was nearing its peak. The recent spike in long-term bond rates has led to speculation that the Fed may not raise rates again this cycle.
Federal Reserve officials are cautious about raising interest rates further due to the risks of stifling economic growth and increasing unemployment, despite expectations of a potential rate hike, according to newly released minutes from their September meeting.
The Federal Reserve will continue with its 'higher-for-longer' interest rate narrative unless there are signs of a slowdown in the consumer sector.
Federal Reserve Chair Jerome Powell indicated that the strength of the U.S. economy and tight labor markets could warrant further interest rate increases, countering market expectations that rate hikes had come to an end. Powell also acknowledged that inflation is still too high and further rate increases could be necessary.
Federal Reserve Chair Jerome H. Powell stated that the central bank may need to raise interest rates further if economic data continues to show strong growth or if the labor market stops cooling.
The Federal Reserve may need to increase interest rates further to combat persistent inflation in the US economy, despite the recent surge in Treasury yields prompting investors to question further rate hikes, according to Richard Clarida of Pimco. Clarida also highlighted the challenge of deciding when to start cutting interest rates and predicted that the US dollar will return to a more normal level once rate differentials close.