Fed opens rate-pause window a crack, but not ready to breathe that air
The U.S. Federal Reserve announced a significant downshift in its interest rate tightening campaign Wednesday. But it’s hard to figure out just how to describe it.. In fact, it raised by another quarter of a percentage point, to a range of 5 to 5.25 per cent, extending this tightening phase to nearly 14 months and five full percentage points.along the lines that the Bank of Canada did in January.has declared is a conditional conditional pause. There are no promises, or even promises of promises.
It’s absolutely a downgrade in the Fed’s rating of the likelihood of further rate increases. Still, when you go from “we think we might still need further hikes” to “we’re going to think about how much more we need to hike,” it’s a pretty subtle shift. Even for the seasoned central banking reporters at Fed chair Jay Powell’s post-announcement news conference, it was difficult to grasp just how much of a change this wording represented.
Later, when asked if it’s possible that interest rates have, in fact, already been raised high enough to bring“We may not be far off, or possibly [we’re] even at, that level,” he said. The decision would depend on an “accumulation” of economic data; inflation is still too high, and higher rates might ultimately still be needed; the inflation target of 2 per cent is still a long way off. And – critically for market participants who have continued to speculate about the potential for rate cuts by the end of this year – that 2 per cent absolutely remains the goal, and anything short of that is not enough.
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.
Fed raises interest rates, flags possible pauseThe Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point and signalled it may pause further hikes. Read on.
Read more »
Fed raises interest rates, flags possible pauseThe Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point and signalled it may pause further hikes. Read on.
Read more »
U.S. Fed raises rates but signals possible pause to assess bank failures - National | Globalnews.caAs widely expected, the U.S. Federal Reserved raised its benchmark interest rate by 25 basis points on Wednesday.
Read more »
Fed raises interest rates, flags possible pauseThe Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point and signalled it may pause further hikes. Read on.
Read more »
Fed's 'hawkish pause' comments send markets tumbling, BTC falls to $28,500Financial asset prices trended down on Wednesday afternoon after Fed Chair Powell announced the latest 25 basis point hike in interest rates
Read more »
Gold gains traction as Fed hints at a pause after raising rates ¼%Exclusive to Kitco News, technical analyst Gary Wagner provides a daily recap of what happened in the gold market, highlighting important events that captured investors' attention during the U.S. trading session. Wagner's commentary features a mix of fundamental news and technical analysis, noting important support and resistance levels.
Read more »