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Fed Likely to Pause Rate Hikes This Week, But More Increases Expected Later as It Monitors Inflation

  • The Fed is expected to hold interest rates steady this week as it waits for more data, but could raise rates again after September.

  • Inflation and the job market have slowed, giving the Fed room to pause rate hikes. But inflation remains high.

  • It's unclear how much previous rate hikes have affected economic growth, spending, and jobs. More time is needed to see the full effects.

  • A potential government shutdown could prevent the release of key economic data the Fed relies on.

  • Rising energy prices and ongoing labor strikes are wild cards that could impact inflation expectations.

cnn.com
Relevant topic timeline:
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 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.
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 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.
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.
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.
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 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.
China maintains benchmark lending rates unchanged as signs of economic stabilization and a weakening yuan lessen the need for immediate monetary easing.
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's decision to pause rate hikes will provide relief for savers and borrowers from rising interest rates, but the possibility of further increases in the future remains open.
The US Federal Reserve holds interest rates steady at 5.25% to 5.50%, projects higher rates for next year, and expects stronger economic growth, causing a slight drop in Bitcoin's price.
The U.S. Federal Reserve kept interest rates steady but left room for potential rate hikes, as they see progress in fighting inflation and aim to bring it down to the target level of 2 percent; however, officials projected a higher growth rate of 2.1 percent for this year and suggested that core inflation will hit 3.7 percent this year before falling in 2024 and reaching the target range by 2026.
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 kept interest rates steady, but economists are skeptical that a soft landing for the economy is guaranteed due to high inflation and continued economic growth.
The Federal Reserve has upgraded its economic outlook, indicating stronger growth and lower unemployment, but also plans to raise interest rates and keep borrowing costs elevated, causing disappointment in the markets and potential challenges for borrowers.
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.
Billionaire investor Bill Ackman predicts that the Federal Reserve is likely done raising interest rates as the economy slows down, but warns of continuing spillover effects and expects bond yields to rise further.
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.
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.
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.
Markets are increasingly expecting a Fed pause in interest rate hikes, with the chance of a rate increase in November dropping to 15.8%, down from 23.1% a week ago and 38.4% a month ago, as volatile Treasury yields play a major role in shaping market expectations.
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.
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 officials are expected to pause on raising interest rates at their next meeting due to recent increases in bond yields, but they are not ruling out future rate increases as economic data continues to show a strong economy and potential inflation risks. The Fed is cautious about signaling an end to further tightening and is focused on balancing the risk of overshooting inflation targets with the need to avoid a recession. The recent surge in bond yields may provide some restraint on the economy, but policymakers are closely monitoring financial conditions and inflation expectations.