{"id":1922784,"date":"2023-05-02T11:26:05","date_gmt":"2023-05-02T15:26:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-in-stride-to-pole-vault-5-policy-rate-then-perhaps-catch-its-breath\/"},"modified":"2023-05-02T11:30:18","modified_gmt":"2023-05-02T15:30:18","slug":"fed-in-stride-to-pole-vault-5-policy-rate-then-perhaps-catch-its-breath","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-in-stride-to-pole-vault-5-policy-rate-then-perhaps-catch-its-breath\/","title":{"rendered":"Fed in stride to pole-vault 5% policy rate, then perhaps catch its breath"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffed-in-stride-to-pole-vault-5-policy-rate-then-perhaps-catch-its-breath%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1922784&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<h2>Fed in Stride to Push Rates to 16-Year High<\/h2>\n<p>By Howard Schneider<\/p>\n<p>The Federal Reserve kicks off a two-day policy meeting on Tuesday that is likely to push the U.S. central bank\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/unemployment-rate-rises-for-first-time-in-a-year\/\" title=\"Unemployment Rate Rises for First Time in a Year\">benchmark overnight interest rate<\/a> to its highest level in nearly 16 years, hitting a potential plateau that will test the economy in a way not seen since the onset of the financial crisis in 2007.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">\n\t\t\t<script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });<\/script>\n\t\t<\/div>\n<p>Global central banks are all now edging their way towards a possible stopping point for rate increases after aggressively tightening credit conditions to tame the worst outbreak of inflation in 40 years. The Fed\u2019s meeting will be followed with expected rate increases by the European Central Bank on Thursday and the Bank of England next week.<\/p>\n<h3>What to Expect<\/h3>\n<ul>\n<li>The Fed&#8217;s second straight meeting after a major U.S. bank failure<\/li>\n<li>Expected rate increases by the European Central Bank and the Bank of England<\/li>\n<li>The U.S. central bank may signal that this week\u2019s rate increase is the last, at least for now<\/li>\n<li>The economy is showing signs of ongoing strength as well as signs of a slowdown<\/li>\n<li>The Fed will announce its policy decision at 2 p.m. EDT (1800 GMT) on Wednesday<\/li>\n<\/ul>\n<p>Given the tensions, \u201cour base case remains that the May hike will be the last of this cycle as the economy responds to the tightening to date,\u201d said Matthew Luzzetti, chief U.S. economist at Deutsche Bank. But \u201cwe see risks tilted toward another increase in June. (Fed) Chair (Jerome) Powell is likely to emphasize the continued need for a hawkish bias to tame inflation, but not commit to any decision at the June meeting.\u201d<\/p>\n<p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-in-stride-to-pole-vault-5-policy-rate-then-perhaps-catch-its-breath\/\" title=\"Fed in stride to pole-vault 5% policy rate, then perhaps catch its breath\">anticipated quarter-percentage-point increase<\/a> on Wednesday will put the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/steve-forbes-reveals-the-key-tool-officials-are-not-wielding-against-inflation\/\" title=\"Steve Forbes Reveals The Key Tool Officials Are Not Wielding Against Inflation\">target federal funds rate<\/a> at roughly the same spot, between 5% and 5.25%. That\u2019s the level most Fed officials last December and in March said they felt would be a proper stopping point, high enough to continue slowing inflation without, they hope, causing more of a slowdown in the economy \u2013 and more job losses \u2013 than needed.<\/p>\n<p>Despite some financial market volatility, key parts of the real economy have motored along, with continued job growth, ongoing wage increases, and unemployment now lodged around a low 3.5% rate.<\/p>\n<p>With this rate increase, Fed officials will hit a level that will be about 1 percentage point above the rate they consider to have a neutral impact on economic activity. That \u201crestrictive\u201d rate should cause households and businesses to curb spending and hiring, slowing inflation in the process.<\/p>\n<p>Analysts expect the Fed from here to adopt a meeting-by-meeting strategy of watching data to see if inflation declines as anticipated, shows signs of persistence that require even higher rates, or falls so fast it warrants a rate reduction.<\/p>\n<p>The meeting this week \u201cwill likely set the stage for a \u2026 period where hawks and doves duke it out over the June policy decision,\u201d said Joe Brusuelas, chief U.S. economist at RSM. \u201cPowell will likely eschew any idea that a rate hike pause is a foregone conclusion.\u201d<\/p>\n<p>(Reporting by Howard Schneider; Editing by Dan Burns and Paul Simao)<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Fed in Stride to Push Rates to 16-Year High By Howard Schneider The Federal Reserve kicks off a two-day policy meeting on Tuesday that is likely to push the U.S. central bank\u2019s benchmark overnight interest rate to its highest level in nearly 16 years, hitting a potential plateau that will test the economy in a &hellip;<\/p>\n","protected":false},"author":66,"featured_media":1922785,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[9397,10405,7498,25594,4326,6366,25593],"class_list":["post-1922784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann","tag-breath","tag-catch","tag-fed","tag-pole-vault","tag-policy","tag-rate","tag-stride"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1922784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1922784"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1922784\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1922785"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1922784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1922784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1922784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}