{"id":1983367,"date":"2023-07-26T16:33:02","date_gmt":"2023-07-26T20:33:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-staff-no-longer-predicting-a-recession-powell-says\/"},"modified":"2023-07-26T16:34:17","modified_gmt":"2023-07-26T20:34:17","slug":"fed-staff-no-longer-predicting-a-recession-powell-says","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-staff-no-longer-predicting-a-recession-powell-says\/","title":{"rendered":"Powell: Fed staff no longer foreseeing recession."},"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\">14<\/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-staff-no-longer-predicting-a-recession-powell-says%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=1983367&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>Federal Reserve \u2063Staff No Longer Expecting a Recession, Says Fed Chairman<\/h2>\n<p>In \u200ba \u200dbig \u200dreversal from just months ago, Federal Reserve staff no longer expect a recession, according to Fed Chairman Jerome Powell. \u2064Powell made this announcement during\u2063 a press conference following the \u2063Fed&#8217;s decision\u2063 to hike its interest rate target. This development bolsters the\u2064 notion that the central bank can\u200b achieve \u2062a\u2064 much-desired &#8220;soft landing&#8221; &#8211; bringing \u2063down inflation without causing a recession.<\/p>\n<h3>Positive Outlook for the\u200d Economy<\/h3>\n<p>Powell informed reporters that the Fed staff&#8217;s forecast now \u200bincludes a\u2064 noticeable slowdown in growth starting later this\u200d year. However, due to the economy&#8217;s recent resilience, they are no\u2062 longer predicting a recession. Powell emphasized that the Fed staff&#8217;s forecasts \u2064are independent of the Federal Open Market Committee, the group responsible for determining the Fed&#8217;s\u200d target interest rate. \u2064While Powell refrained from using the term &#8220;optimism&#8221; just yet, he acknowledged that there \u200bis a pathway to\u200c achieving a soft landing.<\/p>\n<p>&#8220;We&#8217;ve\u2062 observed the\u200c beginnings of disinflation without any negative impact\u200d on the \u2063labor market, \u2064which is \u2063a positive development,&#8221; Powell stated.<\/p>\n<h3>A\u2064 Reversal in Predictions<\/h3>\n<p>This news marks a significant reversal from earlier\u2063 this \u2062year when the Fed staff presented a forecast \u200bthat included \u2062a mild\u200d recession during the FOMC&#8217;s \u2064March\u2064 meeting. It was\u200d the\u2062 first time\u2062 that Fed staff publicly acknowledged the likelihood of a recession. However, <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\">recent economic news<\/a>, particularly the June reports\u200c showing a meaningful \u2063decline in the rate of inflation, \u2064has boosted the optimism\u2063 of economists and\u2064 investors.<\/p>\n<p>The \u200cJune consumer price index report revealed that inflation dropped to a 3% annual \u200crate.\u200d This is a significant decrease from the over \u20649% rate seen last summer, which was\u200b driven by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-staff-no-longer-predicting-a-recession-powell-says\/\" title=\"Powell: Fed staff no longer foreseeing recession.\">rising energy prices due<\/a> to Russia&#8217;s\u200c invasion of Ukraine, as well as <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/secy-yellen-dismissed-concerns-of-double-digit-inflation\/\" title=\"Secy. Yellen dismissed concerns of double-digit inflation\">low interest rates<\/a> and government stimulus.<\/p>\n<h3>Future Rate Hikes \u200dand Investor\u2063 Expectations<\/h3>\n<p>While Powell did\u200d not rule out the \u2062possibility of more rate hikes \u2064during the press conference, most investors anticipate \u2062that the recent rate\u2063 revision, bringing the Fed&#8217;s\u2062 target range \u200cto\u2063 5.25%\u2063 to 5.50%, will \u200bbe the final hike in its tightening cycle. \u200dAccording to CME Group&#8217;s FedWatch\u200c tool, approximately three-fourths of investors\u200b believe that the Fed will maintain steady rates at its next meeting in September. This probability is calculated using <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-set-for-historic-measure-to-curb-inflation\/\" title=\"Federal Reserve Set for Historic Measure to Curb Inflation\">futures contract prices<\/a> for rates in the short-term market\u200b targeted by the Fed.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\">Click \u2062here<\/a> to read\u2063 more from\u200d The Washington Examiner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve staff, as per Chairman Jerome Powell, no longer anticipate a recession, marking a significant shift from recent months. Powell&#8217;s remarks were made after the Fed&#8217;s decision to raise its interest rate target, reinforcing the belief that the central bank can achieve a sought-after &#8220;soft landing.&#8221;<\/p>\n","protected":false},"author":1,"featured_media":1983368,"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-1983367","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\/1983367","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=1983367"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1983367\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1983368"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1983367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1983367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1983367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}