{"id":2011920,"date":"2023-08-25T11:48:02","date_gmt":"2023-08-25T15:48:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-says-fed-will-proceed-carefully-but-leaves-door-open-to-more-rate-hikes\/"},"modified":"2023-08-25T11:49:07","modified_gmt":"2023-08-25T15:49:07","slug":"powell-says-fed-will-proceed-carefully-but-leaves-door-open-to-more-rate-hikes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-says-fed-will-proceed-carefully-but-leaves-door-open-to-more-rate-hikes\/","title":{"rendered":"Powell: Fed to proceed cautiously, open to further rate hikes."},"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%2Fpowell-says-fed-will-proceed-carefully-but-leaves-door-open-to-more-rate-hikes%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=2011920&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 \u2064Reserve Chairman Jerome Powell Warns of Possible Interest Rate Hikes<\/h2>\n<p>Federal Reserve Chairman Jerome Powell delivered his <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-says-fed-will-proceed-carefully-but-leaves-door-open-to-more-rate-hikes\/\" title=\"Powell: Fed to proceed cautiously, open to further rate hikes.\">highly anticipated \u2062annual address<\/a> at the Jackson Hole Symposium, where \u200che discussed the possibility of more <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-chair-no-interest-rate-hikes-until-inflation-spike\/\" title=\"Federal Reserve Chair: No interest rate hikes until inflation spike\">interest rate hikes<\/a>. \u200dWhile emphasizing that the central bank will proceed with caution, Powell left the door open for further tightening.<\/p>\n<blockquote>\n<p>\u201cAt upcoming meetings, we will\u2064 assess our\u200c progress based on the totality of the data and the evolving \u200coutlook and risks,\u201d \u2063Powell stated. \u201cBased on this assessment, we \u200bwill proceed carefully as we decide whether to tighten further or, instead,\u2064 to hold\u2063 the\u200c policy rate constant and await further data.\u201d<\/p>\n<\/blockquote>\n<p>Although this year&#8217;s speech \u200bwas more subdued \u200bcompared to last\u200c year&#8217;s warning of potential &#8220;pain&#8221; resulting from tightening, Powell stayed consistent with his previous statements on future \u200drate \u200dhikes.\u2064 As a result, stock markets remained relatively unchanged following the address.<\/p>\n<p>However, Powell \u2063did acknowledge that the series of rate hikes,\u200d which have brought the Fed&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-the-government-is-distorting-the-housing-market\/\" title=\"How The Government Is Distorting The Housing Market\">interest rate target<\/a> to 5.25% to 5.50%, may lead to some economic slowdown and\u2062 negative \u2062effects on the job market.<\/p>\n<h3>Commitment to Inflation Target<\/h3>\n<p>During his speech, Powell reaffirmed the \u2062Fed&#8217;s commitment to achieving \u200cand \u2064sustaining \u200ba 2% inflation target. Despite suggestions from some economists to raise the target to 3%, Powell emphasized that 2% remains\u2063 the benchmark.<\/p>\n<p>Furthermore, Powell focused \u200con &#8220;core inflation,&#8221; which excludes volatile food and energy prices and \u2064serves as an indicator of sticky inflation. \u200dWhile core inflation has shown some improvement\u200b in\u200c recent\u2064 months, Powell stressed the need for sustained progress to build\u2063 confidence in achieving the Fed&#8217;s\u200b inflation goal.<\/p>\n<h3>Investor Expectations and Future Rate Cuts<\/h3>\n<p>Following the\u200c speech, Brian Marks, executive director of the University of New Haven&#8217;s Entrepreneurship and Innovation Program, described the tone as \u200d&#8221;somewhat hawkish.&#8221; However, most investors still \u2063anticipate the Fed to maintain steady rates at its September meeting.<\/p>\n<p>According to \u2063CME Group&#8217;s FedWatch tool, approximately 83% of investors believe rates will remain unchanged. While the possibility \u2063of rate cuts in the\u2062 future was not\u2064 addressed\u2062 by Powell, many investors predict that rates will \u200cstay elevated into the \u2063next year.<\/p>\n<p>Although recession odds have decreased compared\u2062 to six months ago, \u2064economists like PNC\u2062 chief economist Gus Faucher still anticipate an economic \u200cdownturn.\u200c Faucher expects rate cuts to begin in the early spring of next year as\u200d the\u200d economy\u2063 enters a \u2062mild recession.<\/p>\n<p>It is worth noting that Powell did not\u200d mention the word &#8220;recession&#8221; during \u200bhis address, \u200dbut he did acknowledge the potential for below-trend economic growth.<\/p>\n<p>During the last meeting of central \u200dbank officials, it was revealed that Fed staff no longer expect a recession.\u200c This announcement is significant considering that\u2063 just a few months ago, Fed \u2062staff had projected \u2062a mild recession for this year.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\">Click here<\/a> to read more from The Washington \u2062Examiner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Chair Jerome Powell cautioned that further interest rate increases are a possibility, but emphasized the need for cautious decision-making. Speaking at the Jackson Hole Symposium, he indicated that the central bank&#8217;s tightening cycle may not be complete yet.<\/p>\n","protected":false},"author":1,"featured_media":2011921,"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-2011920","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\/2011920","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=2011920"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2011920\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2011921"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2011920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2011920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2011920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}