{"id":1947558,"date":"2023-06-14T19:00:02","date_gmt":"2023-06-14T23:00:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-leaves-rates-unchanged-sees-two-small-hikes-by-end-of-2023\/"},"modified":"2023-06-14T19:01:36","modified_gmt":"2023-06-14T23:01:36","slug":"fed-leaves-rates-unchanged-sees-two-small-hikes-by-end-of-2023","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-leaves-rates-unchanged-sees-two-small-hikes-by-end-of-2023\/","title":{"rendered":"Fed keeps rates steady, expects two modest hikes by 2023&#8217;s end."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/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-leaves-rates-unchanged-sees-two-small-hikes-by-end-of-2023%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=1947558&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<p><strong>Federal Reserve Signals Potential Interest Rate Increase<\/strong><\/p>\n<p>By Howard Schneider and Michael S. Derby<\/p>\n<p>WASHINGTON (Reuters) &#8211; The Federal Reserve left interest rates unchanged on Wednesday but signaled in new projections that borrowing costs may still need to rise by as much as half of a percentage point by the end of this year, as the U.S. central bank reacted to a stronger-than-expected economy and a slower decline in inflation.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>In a press conference at the end of the central bank\u2019s latest policy meeting, <strong>Fed Chair Jerome Powell<\/strong> described U.S. growth and the job market as holding up better than expected under the weight of the aggressive monetary policy tightening of the past year \u2013 likely lengthening the Fed\u2019s fight to lower inflation but also letting it proceed with less economic damage. <\/p>\n<p>The pause was out of caution, Powell said, to allow the Fed to gather more information before determining if rates do need to rise again, with the pace of its moves now less important than finding a proper endpoint that slows price increases while minimizing any rise in unemployment. <\/p>\n<p>After a year in which many economists and analysts argued recession was imminent and the economy about to crack, under the Fed\u2019s latest quarterly projections \u201cgrowth estimates moved up a bit, unemployment estimates moved down a bit, inflation estimates moved up,\u201d Powell said.  <\/p>\n<p>Taken together, the data suggested \u201cmore restraint will be necessary than we thought,\u201d Powell said of new projections which showed a uniform shift higher in policymakers\u2019 interest rate outlook for the year. Nine of 18 officials see the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-leaves-rates-unchanged-sees-two-small-hikes-by-end-of-2023\/\" title=\"Fed keeps rates steady, expects two modest hikes by 2023's end.\">benchmark overnight interest rate moving<\/a> up another half of a percentage point beyond the current 5.00%-5.25% range, while three others feel it needs to go even higher.<\/p>\n<p>But Powell also said he felt that the pieces of the inflation puzzle were beginning to fall into place, with the Fed focused on \u201cgetting the policy right\u201d as it contemplates what may be its final rate increases before declining inflation allows possible rate cuts next year.<\/p>\n<p>\u201cThe conditions we need to see \u2026 to get inflation down are coming into place,\u201d Powell told reporters, including below-trend growth, a somewhat weaker labor market, and improving supply chains. \u201cBut the process of that actually working on inflation is going to take some time.\u201d<\/p>\n<p>It was a subtly optimistic message that tempered otherwise hawkish projections that see the policy rate rising higher than market participants anticipated.<\/p>\n<p>Subadra Rajappa, head of U.S. rates strategy at Societe Generale, said she thought that was no mistake, with the Fed now keeping its options open in case further rate increases are needed, but not committed if inflation does decline faster than anticipated.<\/p>\n<p>\u201cThe \u2018dots\u2019 are hawkish, but he did a good job of telling markets not to see it as such,\u201d she said.<\/p>\n<p>In fact, investors in contracts tied to the Fed\u2019s policy rate see the central bank delivering only one <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-chair-aggressive-rate-hikes-may-be-needed-to-tame-inflation\/\" title=\"Fed Chair: Aggressive Rate Hikes May Be Needed To Tame Inflation\">quarter-percentage-point increase<\/a> by the end of the year. They see about a 65% chance of a rate hike next month, up only slightly from before this week\u2019s meeting.<\/p>\n<p><strong>Stronger Economic Outlook<\/strong><\/p>\n<p>The Fed\u2019s higher rate outlook coincides with an improved view of the economy and, consequently, slower progress in returning inflation to the central bank\u2019s 2% target. It is currently more than double that.<\/p>\n<p>Fed officials at the median more than doubled their outlook for 2023 economic growth to 1%, from 0.4% in the March projections.<\/p>\n<p>The core Personal Consumption Expenditures Price Index is seen dropping from the current 4.7% to 3.9% by the end of 2023, compared to a 3.6% year-end rate seen in the March policymaker projections.  <\/p>\n<p>The policy decision on Wednesday snapped a string of 10 consecutive rate hikes delivered as the Fed responded to the worst outbreak of inflation in 40 years with a matching set of aggressive moves, including four outsized increases of three-quarters of a percentage point last year.<\/p>\n<p>The central bank\u2019s policy rate, which influences household and business borrowing costs throughout the economy, rose a full 5 percentage points from the onset of the tightening cycle in March 2022, reaching the highest level since just before the start of the 2007-2009 recession.<\/p>\n<p> (Reporting by Howard Schneider; Additional reporting by Bansari Mayur Kamdar; Editing by Chizu Nomiyama and Paul Simao)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/fed-leaves-rates-unchanged\/attachment\/file-photo-federal-reserve-building-is-pictured-in-washington-6\/\"><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/fed-leaves-rates-unchanged\/attachment\/federal-reserve-chair-jerome-powell-speaks-about-interest-rates-in\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Recent News Highlights<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>On Tuesday, 45th President Trump visited a restaurant in Miami after his arraignment. CNN aired the moments with anchor Jake Tapper saying \u2018I don\u2019t need to see any more of that.\u201d <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>There have been weeks of controversy surrounding the Los Angeles Dodgers decision to honor the Sisters of Perpetual Indulgence, the self-described \u201cqueer and trans-nuns\u201d group.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>A school board in southern California, Temecula Valley fires its superintendent, Jodi McClay amid controversy surrounding the board\u2019s decision to pull curriculum discussing Harvey Milk \u2013 the first openly gay man to be elected to public office in California.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Alex Stein<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Foo Yun Chee BRUSSELS (Reuters) \u2013 Alphabet\u2019s Google was charged by EU antitrust regulators with anti-competitive practices in its digital advertising\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>(Reuters) \u2013 Microsoft Corp\u2019s $69 billion acquisition of video game maker Activision Blizzard faced another hurdle on Tuesday after a U.S. judge\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Paul Sandle and Clare Jim LONDON\/HONG KONG (Reuters) -Vodafone and CK Hutchison finally unveiled the merger of their British operations on\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Fanny Potkin SINGAPORE (Reuters) \u2013 Incoming GoTo CEO Patrick Walujo is planning to head the Indonesian technology company only temporarily and\u2026 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve kept interest rates steady, but indicated that rates may need to increase by up to 0.5% by year-end. This decision comes as the central bank responds to a robust economic recovery in the United States.<\/p>\n","protected":false},"author":66,"featured_media":1947559,"comment_status":"open","ping_status":"closed","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":[13384,8649,6801,7498,6367,12884,6009,21807],"class_list":["post-1947558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann","tag-2023s","tag-end","tag-expects","tag-fed","tag-hikes","tag-modest","tag-rates","tag-steady"],"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\/1947558","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=1947558"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1947558\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1947559"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1947558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1947558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1947558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}