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So the Fed raised rates by 0.5% today, and here’s the official statement.
Recent indicators point to modest growth in spending and production.
Job gains have been robust, unemployment remains low
But inflation remains high, reflecting supply and demand imbalances.
And the Fed wants inflation at 2% over the long run.
So the fed funds rate has been raised to 4 and a quarter to 4 and a half per cent.
And the Committee will continue reducing its holdings of Treasuries, debt and mortgage-backed securities.
So in other words, the Fed continues to raise rates but they’re becoming more cautious after inflation dipped to 7.1%.
Now some investors think there could be a rate cut in 2023 but based on the Fed’s dot plot released today, the majority of members think rates will be above 5% one year from now.
And, the Fed thinks GDP growth next year might sit between a 0.5% correction and 1% growth.
So overall, not much changed today. The Fed are still reducing liquidity and raising rates to fight inflation and they’re very much waiting to see what the response will be on the economy.
#stocks #investing #federalreserve #interestrates #stockmarket #finance
So the Fed raised rates by 0.5% today, and here’s the official statement.
Recent indicators point to modest growth in spending and production.
Job gains have been robust, unemployment remains low
But inflation remains high, reflecting supply and demand imbalances.
And the Fed wants inflation at 2% over the long run.
So the fed funds rate has been raised to 4 and a quarter to 4 and a half per cent.
And the Committee will continue reducing its holdings of Treasuries, debt and mortgage-backed securities.
So in other words, the Fed continues to raise rates but they’re becoming more cautious after inflation dipped to 7.1%.
Now some investors think there could be a rate cut in 2023 but based on the Fed’s dot plot released today, the majority of members think rates will be above 5% one year from now.
And, the Fed thinks GDP growth next year might sit between a 0.5% correction and 1% growth.
So overall, not much changed today. The Fed are still reducing liquidity and raising rates to fight inflation and they’re very much waiting to see what the response will be on the economy.
#stocks #investing #federalreserve #interestrates #stockmarket #finance
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