{"id":2002710,"date":"2023-08-16T16:04:01","date_gmt":"2023-08-16T20:04:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-sees-us-slowdown-as-economy-faces-upside-risks-to-inflation-fomc-minutes\/"},"modified":"2023-08-16T16:08:05","modified_gmt":"2023-08-16T20:08:05","slug":"federal-reserve-sees-us-slowdown-as-economy-faces-upside-risks-to-inflation-fomc-minutes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-sees-us-slowdown-as-economy-faces-upside-risks-to-inflation-fomc-minutes\/","title":{"rendered":"Fed sees US slowdown, economy faces inflation risks: FOMC minutes."},"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\">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%2Ffederal-reserve-sees-us-slowdown-as-economy-faces-upside-risks-to-inflation-fomc-minutes%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=2002710&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 data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<h2>The United States Faces\u200c Economic \u200dSlowdown Amid Inflation Risks and Tighter\u200c Credit \u2063Conditions<\/h2>\n<p>The United\u200c States is at the beginning of a slowdown as the\u200d economy continues to \u2064<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-sees-us-slowdown-as-economy-faces-upside-risks-to-inflation-fomc-minutes\/\" title=\"Fed sees US slowdown, economy faces inflation risks: FOMC minutes.\">face\u200d significant upside inflation risks<\/a> and tighter credit \u200cconditions, according\u200c to new <a href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/fomcminutes20230726.htm\" target=\"_blank\" rel=\"noopener\">minutes<\/a> from the July Federal Open Market Committee (FOMC) policy\u200d meeting.<\/p>\n<p>Although the economy has been expanding at a \u2063&#8221;moderate pace,&#8221; the latest credit developments in the &#8220;sound\u2063 and resilient&#8221; banking system were &#8220;likely to\u2062 weigh on\u200b economic\u2064 activity&#8221; for businesses and households.<\/p>\n<p>But staff economists no longer see a &#8220;mild \u200drecession&#8221; later this \u2062year\u200c amid better-than-expected spending and real activity.<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/opinion\/federal-reserve-rate-hikes-helping-or-hurting-the-economy-5456512\">Federal Reserve Rate Hikes Helping or\u200d Hurting the\u2062 Economy?<\/a><br \/>\n        <br \/>\n        <span class=\"text-[14px] leading-[18px] text-[#737373]\">8\/15\/2023<\/span>\n      <\/li>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/us\/in-depth-federal-reserve-considering-central-bank-digital-currency-but-few-understand-its-dangers-5448557\">IN-DEPTH: \u200cFederal Reserve Considering Central\u200b Bank Digital Currency,\u2062 But Few \u200bUnderstand Its Dangers<\/a><br \/>\n        <br \/>\n        <span class=\"text-[14px] leading-[18px] text-[#737373]\">8\/11\/2023<\/span>\n      <\/li>\n<\/ul>\n<\/blockquote>\n<p>&#8220;However, the staff continued to expect that real GDP growth in 2024 and 2025 would run below their estimate of potential \u2062output growth, leading to\u2064 a small increase\u200d in the unemployment rate relative to its current level,&#8221; the minutes noted.<\/p>\n<p>Most rate-setting Committee \u2064members \u2064agreed that more <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bond-market-swinging-between-rallies-routs\/\" title=\"Bond Market Swinging Between Rallies, Routs\">interest-rate hikes<\/a> could be needed if additional inflation risks materialize. Participants noted that inflation \u200dremained unacceptably high, and more evidence was needed to determine if price pressures are diminishing on a sustainable \u2063basis.<\/p>\n<p>\u201cWith inflation \u2063still well above the Committee\u2019s longer-run goal\u200b and the labor market remaining tight,\u200c most participants continued to see significant upside risks\u200d to inflation, which\u200c could\u2063 require further tightening\u2062 of monetary\u2064 policy,\u201d the \u200cmeeting summary \u2064stated.<\/p>\n<p>At the \u200dsame time, Federal Reserve officials fear that the central\u200d bank could tighten too much, producing a series of risks for the \u200cbroader economy.<\/p>\n<p>&#8220;A \u200cnumber of participants judged that, with the stance \u2063of monetary policy in \u2064restrictive territory, risks to the \u200cachievement of\u2062 the Committee&#8217;s goals had become\u2064 more \u2064two \u200csided, and \u200cit\u2062 was important that \u2062the Committee&#8217;s\u2063 decisions balance the risk of \u200dan inadvertent overtightening of policy \u2063against the cost of an insufficient tightening,&#8221; the FOMC\u2064 minutes stated.<\/p>\n<p>A couple of\u2064 participants \u200dsupported hitting the pause button at \u200dthe July FOMC meeting.<\/p>\n<p>The labor market was still tight, but there were indicators that the \u200bjobs arena was going\u200c through a better balance.<\/p>\n<p>&#8220;The\u200b labor\u200d market remained very \u2064tight,\u200b though\u2062 the imbalance between\u200c demand and supply in the labor market was gradually \u2064diminishing,&#8221; the minutes said.<\/p>\n<p>The U.S. <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidenflation-has-cost-average-u-s-household-10k-over-past-two-years\/\" title=\"Bidenflation Has Cost Average U.S. Household k Over Past Two Years\">financial markets maintained<\/a> their losses following the release of the \u200dminutes \u2063as the leading \u2064benchmark indexes were in the red.<\/p>\n<p>Treasury yields were mostly up, with the benchmark 10-year yield\u200b adding nearly 4\u2062 basis points to\u200b 4.26 percent. The\u200b 2-year yield picked up\u200b 3 basis points to above 4.98 percent.<\/p>\n<p>The \u200dU.S.\u2063 Dollar Index, a measurement of the\u200d greenback against a basket of currencies,\u2064 strengthened above 103.40 \u2063after the minutes.<\/p>\n<h2>To\u2063 Hike \u2064or\u2064 Not\u200d to Hike<\/h2>\n<p>Over the past week,\u2064 several Fed officials\u2062 have offered thoughts\u200b about monetary policy, particularly on \u200cthe interest-rate front.<\/p>\n<p>Minneapolis Federal Reserve President Neel Kashkari <a href=\"https:\/\/www.minneapolisfed.org\/speeches\/2023\/neel-kashkari-participates-in-qa-at-api-groups-global-controllers-conference-in-minneapolis\" target=\"_blank\" rel=\"noopener\">told<\/a> the APi\u2062 Group\u2019s Global \u2062Controllers Conference on Aug. \u206215 that\u200c he is\u2062 not\u200d ready to declare mission accomplished in \u200cthe inflation battle, hinting that there could \u200cbe more tightening ahead.<\/p>\n<p>\u201cInflation \u2063is coming down.\u200c We have made progress\u2063 and good progress. I feel good about that. It\u2019s still too high,&#8221; Mr. Kashkari said. &#8220;The question on my mind is,\u2063 have we done enough to actually \u200bget inflation\u2064 all \u2063the way back down to our 2 percent target?\u2064 Or do we have to do\u2062 more?&#8221;<\/p>\n<div>\n<figure style=\"width:600px\" class=\"alignnone\"><figcaption>Minneapolis Fed President \u200bNeel\u2063 Kashkari speaks during an \u2062interview at Reuters in New York on \u200bFeb. 17, \u200b2016. (Brendan McDermid\/Reuters)<\/figcaption><\/figure>\n<\/p><\/div>\n<p>\u201cAre we done raising rates? I\u2019m not ready to \u200bsay that we\u2019re done,&#8221; he added.<\/p>\n<p>Last month, the annual \u2062inflation rate <a href=\"https:\/\/www.theepochtimes.com\/business\/us-annual-inflation-marks-first-increase-in-a-year-as-energy-shelter-climb-5455969\" target=\"_blank\" rel=\"noopener\">ticked up<\/a> for the first\u2062 time in \u200da year,\u200b rising to 3.2 percent from \u200c3 percent \u2062in \u200dJune. This came in softer than expected, \u200dbut economists agree that it\u2064 is\u200c not a trend\u2064 that the central bank wants to \u2062see.<\/p>\n<p>Concerns were amplified \u200bfollowing the higher-than-expected jump in producer \u200dprices, climbing to 0.8 percent year-over-year and 0.3 percent\u2062 month-over-month in July. \u2064Both prints up considerably from June. A higher producer price index (PPI) \u2062is typically considered \u200cby \u200deconomists \u2063a precursor to rising consumer prices.<\/p>\n<p>According to Philadelphia Fed Bank \u200cPresident Patrick\u200d Harker, \u2063consumer prices have \u2062slowed to\u200d the \u2064point where \u200dthe central bank can think about hitting the brakes \u200cand \u200csteadily holding the benchmark\u2062 fed funds rate.<\/p>\n<p>\u201cAbsent any alarming new data between now and \u200bmid-September,\u2062 I \u200bbelieve we may be at \u2062the \u2064point where we can be patient and hold \u2063rates\u2064 steady and let\u2063 the monetary policy\u200d actions we have \u2062taken do their work,&#8221;\u2063 Mr. Parker said \u200bin a <a href=\"https:\/\/www.philadelphiafed.org\/the-economy\/monetary-policy\/230808-on-the-flight-path-to-the-soft-landing\" target=\"_blank\" rel=\"noopener\">prepared speech<\/a> at an event sponsored\u2063 by the Philadelphia Business Journal.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>stable&#8221; financial system have raised concerns about potential risks to financial stability. The FOMC acknowledges the need for a cautious approach to monetary policy, as they monitor inflation and credit conditions closely. The United States is entering a period of economic slowdown due to inflation risks and tighter credit conditions.<\/p>\n","protected":false},"author":278,"featured_media":2002711,"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":[543],"tags":[],"class_list":["post-2002710","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"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\/2002710","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\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2002710"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2002710\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2002711"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2002710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2002710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2002710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}