Federal Reserve officials hoping for evidence of a clear decline in inflation and a slowing economy got some of each from data since their last meeting, but likely not enough of either to downplay the possible need for further rate increases later this year.
rose month-over-month at the fastest pace in 14 months in August, and while that was driven largely by volatile energy costs, a measure of underlying inflation also accelerated unexpectedly.
A new Summary of Economic Projections released after the meeting will show if the majority of policymakers still anticipate one further quarter-point increase by the end of the year, as in their June outlook. Since their meeting in July, only two Fed policymakers have said they felt rates do not need to rise further, while others noted their outlook for slowing inflation was built around a slightly higher federal funds rate.
Much of the information has pointed towards a slowing-but-still-growing economy with easing price pressures - the "soft landing" that policymakers have hoped to engineer.The pace of job and wage growth has eased, and other labor market measures, such as the rate at which workers are quitting jobs, the rate of job openings, and the number of unemployed people per open job, have edged towards the levels seen before the COVID-19 pandemic disrupted the economy.
Overall bank credit has been falling on a year-over-year basis since mid-July, evidence of financial firms tightening access either through higher rates or stricter standards.What hasn't happened - and what Powell says is necessary - is a decline in overall economic growth to the sort of below-trend pace that would add to policymakers' confidence that inflation will continue what has been a sustained decline since the summer of 2022, when it hit a 40-year high.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
United States Federal Reserve Budget BalanceGet the Federal Budget Balance results in real time as they're announced and see the immediate global market impact.
Read more »
GOP takes on Federal Reserve in battle over digital dollarCentral bank digital currencies have become increasingly popular over the last three years. However, they are controversial among crypto enthusiasts and conservatives.
Read more »
US Consumer Price Index data to offer last insight before Federal Reserve rate decisionThe highly-anticipated US Consumer Price Index (CPI) inflation data for August will be published by the Bureau of Labor Statistics (BLS) on Wednesday
Read more »
US inflation climbs 3.7% in August as Fed mulls more hikesUS inflation edged higher in August, spurring questions of whether the Federal Reserve will increase interest rates once again this fall in its quest to tamp down prices. The Consumer Price Index &…
Read more »
'Complicated' inflation report produces wavering U.S. stocks, keeps higher-for-longer theme in rates intactA less-than-straightforward August's consumer price index came in mostly in line with expectations and provided reasons for the Federal Reserve to hike again.
Read more »
J.P.Morgan expects no further Fed interest rate hikes this cycle By ReutersJ.P.Morgan expects no further Fed interest rate hikes this cycle
Read more »