{"id":1974265,"date":"2023-07-16T06:09:02","date_gmt":"2023-07-16T10:09:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/days-of-feds-historic-tightening-cycle-may-be-numbered-thanks-to-inflation-news\/"},"modified":"2023-07-16T06:14:04","modified_gmt":"2023-07-16T10:14:04","slug":"days-of-feds-historic-tightening-cycle-may-be-numbered-thanks-to-inflation-news","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/days-of-feds-historic-tightening-cycle-may-be-numbered-thanks-to-inflation-news\/","title":{"rendered":"Fed&#8217;s tightening cycle may end soon due to inflation news."},"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\">20<\/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%2Fdays-of-feds-historic-tightening-cycle-may-be-numbered-thanks-to-inflation-news%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=1974265&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--><h2>The Federal Reserve&#8217;s Tightening \u2062Cycle May Be Coming to an End<\/h2>\n<p>The Federal Reserve&#8217;s aggressive\u2064 rate revisions over \u2064the\u2063 past year may be nearing \u2063their conclusion as signs\u200d of\u200d decreasing inflation emerge. Recent data on\u2063 wholesale \u200band consumer \u2063prices \u2064indicate that inflation is on\u2064 the decline, which \u2064is good news for an economy\u200c that has been\u2063 grappling with rising \u2064price pressures for \u200cthe past two years.<\/p>\n<p>Both the\ud834\udd7a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/breaking-u-s-producer-price-index-skyrockets-registers-twice-as-high-as-expected-for-april\/\" title=\"BREAKING: U.S. Producer Price Index Skyrockets, Registers Twice As High As Expected For April\">producer price index<\/a> and the \u200bconsumer price \u200cindex came in lower than expected, \u200csuggesting that the \u2063fight against inflation is \u2064progressing \u2063better than\u2062 anticipated. \u2062This \u2063positive development \u2064increases the \u2062likelihood that the \u200dFed will only raise \u2063rates one more \u2062time this year, marking the end of its historic quest to\u2063 combat the\u200b country&#8217;s\u2064 worst inflation\u2064 in \u200bnearly two generations.<\/p>\n<h3>Pausing \ud834\udd7ato Assess\u200b the\u200d Impact<\/h3>\n<p>In June, the Fed paused\u200c its rate hikes for\u2063 the first time, signaling \u2063a temporary break to\u2062 evaluate \u2064the \u200ceffects\u2063 of the yearlong\u2064 barrage of\u2063 rate increases \ud834\udd7aon the \u2062economy. However,\u200c at the same meeting, Fed\ud834\udd7a officials surprised \u2062economists\u2064 by indicating \u2063that there would be\u2063 two more\u2064 rate\u2062 hikes later in the year. The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-prepares-for-longer-than-expected-inflation-fight\/\" title=\"Fed Prepares for Longer-Than-Expected Inflation Fight\">latest inflation readings<\/a>, however, have shifted expectations, with many now \u200dbelieving that the July\u2064 rate hike\u2063 will signal the end of the tightening \u200bcycle.<\/p>\n<p>The current rate\u200b target is 5% to 5.25%, and\u2062 investors anticipate \u2064that this year&#8217;s \u200cterminal rate will range from\u2062 5.25% to 5.50%. While\u2062 some \u200dmembers of the Federal \u2064Open Market Committee \u200d(FOMC) \u200bmay advocate for \u200can &#8220;insurance&#8221;\u2064 hike in\u200b September\u200c due \u200bto high core inflation, the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/days-of-feds-historic-tightening-cycle-may-be-numbered-thanks-to-inflation-news\/\" title=\"Fed's tightening cycle may end soon due to inflation news.\">prevailing market indicators suggest<\/a> \u200bthat the Fed\u2064 is moving \u2063closer\u2062 to\u2062 the end game.<\/p>\n<h3>Investor Sentiment and Future Outlook<\/h3>\n<p>Investors overwhelmingly\u200c believe that \u200dthe expected\u2063 rate revision in\ud834\udd7a July will be the last for Fed Chairman Jerome Powell and the FOMC. The probability\ud834\udd7a of \u2064another \u2062rate\ud834\udd7a hike in September \u200bhas \u2064decreased significantly,\u200c with \u200binvestors now assigning\u200d just \u2064a 13% chance. However, Fed officials will <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/top-who-scientist-behind-report-questioning-covid-lab-leak-theory-axed-over-alleged-sexual-misconduct\/\" title=\"WHO Scientist Removed for Sexual Misconduct After Questioning COVID Lab Leak Theory.\">remain open-minded<\/a> and base their policy decisions on future \u200beconomic developments and reports.<\/p>\n<p>The\u200b rate hikes\u200d have had \u2064a significant impact \u2064on various aspects of the economy, including \u200bcredit\u200b cards, mortgages, \u2063investments, and savings. Mortgage\u200c rates have risen,\u2062 making homes less \u200daffordable, while credit \ud834\udd7acard APRs have soared. As\u200d the Fed&#8217;s target interest\u2064 rate increases, borrowing and repaying money becomes\ud834\udd7a more costly.<\/p>\n<p>Looking ahead, key \u2063economic reports, including inflation data for July and\u200b August, will \u2063provide\u200b further insight\u200c into whether\ud834\udd7a a pause \u200din rate hikes\ud834\udd7a is warranted. The Fed&#8217;s monetary\u2064 policy will be guided by \u2064the data and \u200bthe\u200d state of the U.S. economy,\ud834\udd7a which is currently \u200bshowing signs of \u2063slowing.<\/p>\n<p>Overall, the decreasing\u200c inflation \u2063and indications of\u2062 a\u2063 slowdown\u200b in core\ud834\udd7a inflation \u2062suggest that the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidenflation-new-home-prices-soared-and-sales-dropped-more-than-expected-in-january\/\" title=\"Bidenflation: New Home Prices Soared and Sales Dropped More Than Expected in January\">expected rate hike<\/a> at\u200b the end of this month will likely be \u200dthe\u2064 last of\u2062 the \u200bcycle. While\u200c unforeseen shocks \u200dcould still \ud834\udd7aimpact prices, the \u200bcurrent state of\u200d the\u200d economy and its productive \u200dcapacity\u2063 make \u2063this \u2064less \ud834\udd7aof a risk than\u2064 before.<\/p>\n<p><strong>Click here to read more from the Washington Examiner.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve&#8217;s tightening cycle may be nearing its end after over a year of aggressive rate revisions, as inflation appears to be decreasing. The latest producer price index revealed a mere 0.1% inflation for the year ending in June.<\/p>\n","protected":false},"author":1,"featured_media":1974266,"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":[538],"tags":[],"class_list":["post-1974265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"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\/1974265","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1974265"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1974265\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1974266"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1974265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1974265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1974265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}