Eurasia Review on Nostr: US Fed Holds Target Interest Rate Steady: This Won’t Last Much Longer – Analysis ...
US Fed Holds Target Interest Rate Steady: This Won’t Last Much Longer – Analysis
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The US Federal Reserve's Federal Open Market Committee (FOMC) has announced that it will maintain the current target policy interest rate of 5.5 percent. The committee has held the rate at this level since July 2023. The FOMC does not expect to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. However, economic indicators continue to weaken, suggesting that the FOMC will lower rates in the near future. Former New York Fed president Bill Dudley has called for a rate cut, indicating mounting discomfort with the state of the economy among investors. Economists from Bank of America and Citigroup have expressed concern over cracks in consumer sentiment, particularly at lower income levels. Weakness in the labor market is evident in the decline in job openings and new hires. The Fed's Beige Book report indicates that most of the US economy is either flat or in decline. The Fed may choose to do nothing until after the election to avoid appearing politically biased. Regardless of who is elected, the Fed is expected to lower the target interest rate as economic conditions worsen. A multitude of economic indicators points to an upcoming or ongoing recession. The Mises Institute, founded in 1982, teaches the scholarship of Austrian economics, freedom, and peace.
#UsFederalReserve #InterestRates #Economy
https://www.eurasiareview.com/01082024-us-fed-holds-target-interest-rate-steady-this-wont-last-much-longer-analysis/
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The US Federal Reserve's Federal Open Market Committee (FOMC) has announced that it will maintain the current target policy interest rate of 5.5 percent. The committee has held the rate at this level since July 2023. The FOMC does not expect to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. However, economic indicators continue to weaken, suggesting that the FOMC will lower rates in the near future. Former New York Fed president Bill Dudley has called for a rate cut, indicating mounting discomfort with the state of the economy among investors. Economists from Bank of America and Citigroup have expressed concern over cracks in consumer sentiment, particularly at lower income levels. Weakness in the labor market is evident in the decline in job openings and new hires. The Fed's Beige Book report indicates that most of the US economy is either flat or in decline. The Fed may choose to do nothing until after the election to avoid appearing politically biased. Regardless of who is elected, the Fed is expected to lower the target interest rate as economic conditions worsen. A multitude of economic indicators points to an upcoming or ongoing recession. The Mises Institute, founded in 1982, teaches the scholarship of Austrian economics, freedom, and peace.
#UsFederalReserve #InterestRates #Economy
https://www.eurasiareview.com/01082024-us-fed-holds-target-interest-rate-steady-this-wont-last-much-longer-analysis/