https://sputnikglobe.com/20231213/federal-reserve-leaves-us-interest-rates-unchanged-sets-stage-for-three-cuts-in-2024-1115562441.html
Federal Reserve Leaves US Interest Rates Unchanged, Sets Stage for Three Cuts in 2024
Federal Reserve Leaves US Interest Rates Unchanged, Sets Stage for Three Cuts in 2024
Sputnik International
The Federal Reserve left US interest rates unchanged during its policy meeting, marking the third time in a row for such a decision after 11 prior interest rate hikes to help ease inflation.
2023-12-13T20:07+0000
2023-12-13T20:07+0000
2023-12-13T21:32+0000
economy
federal reserve
us
jerome powell
us federal open market committee (fomc)
inflation
economic outlook
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“The committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run,” the Fed said in a statement, referring to its policy-making Federal Open Market Committee (FOMC). “In support of these goals, the committee decided to maintain the target range for the federal funds rate at 5.25 to 5.5%.” The 5.25%-5.5% range, in place since July, is the highest level in lending rates that the United States has practiced since 2001.Policymakers at the Federal Reserve have projected that US inflation will ease to 2.4% by next year from a current 3.1%, bringing interest rates down as well to a maximum of 4.6% from a present 5.5%, the central bank’s Summary of Economic Projections showed.Officials further indicated that three rate cuts were on the board in 2024, with another four in 2025. Three additional cuts were forecasted for 2026, with the ultimate goal being to cut rates to between 2% and 2.25%. Reports have suggested that the first batch of rate cuts are expected to begin in June 2024.However, while Federal Reserve Chair Jerome Powell acknowledged a positive economic outlook, the official underscored that inflation remains elevated even as it has managed to ease somewhat.Asked whether the nation is headed into recession territory, Powell reiterated there is "always a real possibility" the economy could act "unusual," as it has done since the COVID-19 pandemic. Powell added that while the central bank's policy rate is likely near its peak, he would not entirely rule out another rate hike. "We are prepared to tighten policy further, if appropriate," he said.In response to the Fed's Wednesday decision markets popped, with the Dow closing more than 500 points in the green - a first for the stock index. The S&P 500 and Nasdaq Composite followed suit, closed out the day's trading with gains of 63.39 and 200.57, respectively.
https://sputnikglobe.com/20231212/us-inflation-saw-slight-november-ease-as-bankers-anticipate-fed-rate-cuts-by-june-2024-1115545435.html
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federal reserve interest rates unchanged, how many interest rates has federal reserve issued, what is fed's economic outlook, what is likelihood of us experiencing recession,
federal reserve interest rates unchanged, how many interest rates has federal reserve issued, what is fed's economic outlook, what is likelihood of us experiencing recession,
Federal Reserve Leaves US Interest Rates Unchanged, Sets Stage for Three Cuts in 2024
20:07 GMT 13.12.2023 (Updated: 21:32 GMT 13.12.2023) WASHINGTON (Sputnik) - The Federal Reserve left US interest rates unchanged during its policy meeting, marking the third time in a row for such a decision after 11 prior interest rate hikes to help ease inflation.
“The committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run,” the Fed said in a statement, referring to its policy-making Federal Open Market Committee (FOMC). “In support of these goals, the committee decided to maintain the target range for the federal funds rate at 5.25 to 5.5%.”
The 5.25%-5.5% range, in place since July, is the highest level in lending rates that the United States has practiced since 2001.
Policymakers at the Federal Reserve have projected that US inflation will ease to 2.4% by next year from a current 3.1%, bringing interest rates down as well to a maximum of 4.6% from a present 5.5%, the central bank’s Summary of Economic Projections showed.
Officials further indicated that three rate cuts were on the board in 2024, with another four in 2025. Three additional cuts were forecasted for 2026, with the ultimate goal being to cut rates to between 2% and 2.25%.
Reports have suggested that the first batch of rate cuts are expected to begin in June 2024.
12 December 2023, 22:33 GMT
However, while Federal Reserve Chair Jerome Powell acknowledged a positive economic outlook, the official underscored that inflation remains elevated even as it has managed to ease somewhat.
“Inflation is still too high. Ongoing progress and bringing it down is not assured. And the path forward is uncertain,” he told reporters. "No one is declaring victory."
Asked whether the nation is headed into recession territory, Powell reiterated there is "always a real possibility" the economy could act "unusual," as it has done since the COVID-19 pandemic.
“There’s little basis for thinking that the economy is in a recession now," he said. "I think there’s always a probability that there will be a recession in the next year. It’s a meaningful probability no matter what the economy is doing. So it’s always a real possibility."
Powell added that while the central bank's policy rate is likely near its peak, he would not entirely rule out another rate hike. "We are prepared to tighten policy further, if appropriate," he said.
In response to the Fed's Wednesday decision markets popped, with the Dow closing more than 500 points in the green - a first for the stock index. The S&P 500 and Nasdaq Composite followed suit, closed out the day's trading with gains of 63.39 and 200.57, respectively.
