Federal Reserve pauses interest-rate hikes for now
The Federal Reserve has halted increasing its target interest rate, the Federal Funds Rate, at 5 percent to 5.25 percent, as consumer inflation reported by the U.S. Bureau of Labor Statistics (BLS) continues to slow down, now down to an elevated 4 percent the past 12 months. [...]the Fed is not taki...
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Published in | The Business Journal - Central New York Vol. 37; no. 26; p. 17 |
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Main Author | |
Format | Trade Publication Article |
Language | English |
Published |
Syracuse
Central New York Business Journal
26.06.2023
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Subjects | |
Online Access | Get full text |
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Summary: | The Federal Reserve has halted increasing its target interest rate, the Federal Funds Rate, at 5 percent to 5.25 percent, as consumer inflation reported by the U.S. Bureau of Labor Statistics (BLS) continues to slow down, now down to an elevated 4 percent the past 12 months. [...]the Fed is not taking further rate hikes off the table - instead saying in its June 14 statement it is still "determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time..." Looking forward, if the unemployment projections play out as anticipated or are worse, there will come a point when the Federal Reserve begins cutting interest rates to ease lending conditions and may begin to accumulate more treasuries and mortgage-backed securities again - so-called quantitative easing - if prices look like they might start contracting outright in deflation. |
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