Federal Reserve Poised to Announce , Latest Interest Rate Hikes , Despite Slowing Inflation.
On February 1, the Federal Reserve will announce
its latest interest rate increase which comes amid
the central bank's aggressive campaign to slow inflation.
NBC reports that while there are signs that inflation
is slowing, some indications suggest the economy
is reflating, which could also send prices up. .
We expect Fed Chair Powell
will insist on the need hold
policy at a restrictive level
for some time to bring inflation
down toward the 2% target, Gregory Daco, chief economist at Ernst & Young’s EY-Parthenon consultancy, via NBC.
Powell will also stress that
history cautions strongly against
prematurely loosening policy, Gregory Daco, chief economist at Ernst & Young’s EY-Parthenon consultancy, via NBC.
Powell will also stress that
history cautions strongly against
prematurely loosening policy, Gregory Daco, chief economist at Ernst & Young’s EY-Parthenon consultancy, via NBC.
According to the 'Bloomberg' index,
financial conditions have eased to reach
the lowest level since last February.
These changes can be seen in declining average
mortgage rates, which have retreated back to
6.13% after hitting a high of 7.08% in November.
NBC reports that the rising price of commodities like oil
and the improvement of the stock market have contributed
to a sense of cautious optimism regarding the economy.
NBC reports that the rising price of commodities like oil
and the improvement of the stock market have contributed
to a sense of cautious optimism regarding the economy.
The positive changes have eased fears of a global
recession, yet economists believe that the Fed will
continue to clamp down to prevent rapid economic growth.
According to Neil Dutta, the head of U.S. economics
at Renaissance Macro financial group, the Fed's
0.25% interest rate hike may end up being too small. .
The Fed’s story only
works if the economy
is slowing down.
Sorry, but I don’t see it, Neil Dutta, head of U.S. economics at
Renaissance Macro financial group, via NBC