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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Bibliographic Details
Published inThe Business Journal - Central New York Vol. 37; no. 26; p. 17
Main Author Romano, Robert
Format Trade Publication Article
LanguageEnglish
Published Syracuse Central New York Business Journal 26.06.2023
Subjects
Baby boomers
Economic conditions
Federal Reserve monetary policy
Inflation
Interest rates
Job openings
Prices
Recessions
Unemployment
United States > US
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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.