{"id":2082017,"date":"2023-10-28T05:42:01","date_gmt":"2023-10-28T09:42:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-still-worried-about-inflation-expected-to-forgo-rate-hike-this-week\/"},"modified":"2023-10-28T05:47:03","modified_gmt":"2023-10-28T09:47:03","slug":"fed-still-worried-about-inflation-expected-to-forgo-rate-hike-this-week","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-still-worried-about-inflation-expected-to-forgo-rate-hike-this-week\/","title":{"rendered":"Fed likely to skip rate hike this week due to inflation concerns."},"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\">24<\/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-still-worried-about-inflation-expected-to-forgo-rate-hike-this-week%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=2082017&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\u200b Federal\u200c Reserve\u2063 to \u2063Keep \u200cInterest Rates \u200cSteady Amid \u2062Inflation Concerns<\/h2>\n<p>The Federal Reserve is set to keep its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-members-shaping-the-2024-campaign-economy-head-to-capitol-hill\/\" title=\"Fed members head to Capitol Hill to shape the 2024 campaign economy.\">interest rate steady<\/a> after central bank officials convene\u2064 this week to discuss progress in bringing down inflation. The Federal Open Market Committee will\u200c meet\u2062 on Tuesday and Wednesday to decide whether to raise \u2062rates again. Fed leadership is careful to telegraph their moves so as not to spook markets, and the overwhelming majority of economists\u2062 and \u2062Fed watchers\u2064 expect that the central bank will\u2064 hold off on\u200d tightening this\u200c time around.<\/p>\n<h3>Inflation Holds\u2063 Steady at\u200d 3.4% in September in Fed&#8217;s Preferred Gauge<\/h3>\n<p>But the Fed, which\u200d has been raising rates for more than a year,\u2064 is in a tough position. In order to stave off\u2063 inflation, it has to keep rates high \u2014\u200d but\u2062 it doesn\u2019t want to overtighten and knock the economy into a recession. After a year of straight declines in inflation, progress has \u2063not been as clear-cut in recent months.<\/p>\n<p>Inflation\u200c in \u2064the consumer\u2062 price index for the year ending in September\u2064 punched in at 3.7%, matching\u200c the level it was the month before. On a\u200c month-to-month basis, inflation rose 0.4%, \u200bslightly higher\u200c than projected.<\/p>\n<p>In the Fed\u2019s preferred \u200cgauge, the personal \u200cconsumption expenditures price index, inflation also held\u200c steady at 3.4% \u200cfor the year ending\u2064 in September.<\/p>\n<p>Both of those numbers are still above the Fed\u2019s 2% goal. Still, inflation\u2062 is much lower than last\u200d year when it \u200dpopped above 9%, showing meaningful\u200b progress.<\/p>\n<p>The Fed has indicated it is taking a wait-and-see \u2064approach to future rate \u200chikes, with officials like Fed \u2062Chairman Jerome Powell hinting that the Fed is going to keep rates where\u200c they are now\u200c unless indications emerge that inflationary growth is rearing its head again. \u200bMost investors also expect a pause this \u200cweek.<\/p>\n<blockquote>\n<p>\u201cNo rate hike is expected,\u201d Greg McBride, chief \u200dfinancial analyst at Bankrate, told the \u200bWashington Examiner. \u201cBut I \u2064think we\u2019ll otherwise hear a\u200d pretty familiar\u200d refrain \u2014 that the Fed is committed to price stability, that there still is a\u200c long way to go to get inflation to 2%,\u2064 and that they will\u2063 maintain the posture\u2062 that\u200c allows them the flexibility\u200b to raise interest rates \u2062again if needed.\u201d<\/p>\n<\/blockquote>\n<p>Investors see\u200b about a\u200d 97%\u2062 probability\u2062 that the Fed will not hike rates at this coming\u2063 meeting, according \u200bto the CME\u2063 Group\u2019s FedWatch tool, \u2063which calculates the probability\u2062 using \u2063futures contract prices for rates in the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powell-set-to-testify-before-congress-heres-what-to-expect\/\" title=\"Powell set to testify before Congress \u2014 here's what to expect\">short-term market targeted<\/a> by\u2064 the Fed.<\/p>\n<p>Investors place\u2063 a 19% chance that the Fed raises rates before the end of \u2063this year \u2014 \u2063down from\u2064 40% just \u2064a month ago.<\/p>\n<p>Before \u200dall FOMC meetings, there\u2064 is a &#8220;media blackout&#8221; period \u2064in which Fed \u2063officials aren\u2019t allowed\u2063 to comment to the press. During his\u2064 last speech before that blackout, Powell worked to reassure markets \u2062about the Fed\u2019s \u200bcourse of action.<\/p>\n<blockquote>\n<p>\u201cGiven \u200cthe uncertainties and risks, \u2064and\u2064 how far we have\u200d come, the committee is proceeding carefully,\u201d Powell said earlier this\u200d month. \u201cWe will make\u200c decisions\u2062 about the extent of additional policy firming \u2062and how \u200clong policy will remain restrictive based on the totality of the incoming data, the \u200devolving outlook, and the balance\u200d of \u200crisks.\u201d<\/p>\n<\/blockquote>\n<p>While there\u2064 was no \u2062indication of a rate hike after this coming meeting, Powell\u2019s speech wasn\u2019t\u2063 entirely dovish and was seen more as balanced and cautious. He did suggest that the Fed could conduct more hikes down the line should the data indicate that inflation isn\u2019t meaningfully \u2062falling.<\/p>\n<blockquote>\n<p>\u201cWe are \u200cattentive to \u200drecent data\u200c showing the resilience of economic growth\u2064 and demand \u200bfor labor. Additional evidence of persistently\u200c above-trend\u2063 growth, \u200bor that tightness in the labor market is no longer easing, could\u200b put\u2063 further progress on inflation at risk and \u2063could \u2062warrant further tightening of monetary \u2064policy,\u201d he\u200c said.<\/p>\n<\/blockquote>\n<p>McBride \u2064said the only data that has come \u2062in during the media blackout that is \u200dperhaps\u2064 a bit surprising to\u200c the Fed\u200c is the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-still-worried-about-inflation-expected-to-forgo-rate-hike-this-week\/\" title=\"Fed likely to skip rate hike this week due to inflation concerns.\">red-hot gross domestic product report<\/a> for September,\u200d which \u2062dropped on Thursday.<\/p>\n<p>Economic \u200cgrowth accelerated to a 4.9% seasonally \u2063adjusted annual rate in the third quarter \u2064of this year, up from 2.1% the quarter before, the Bureau of\u2064 Economic\u2063 Analysis reported. That was above the expectations of \u2062economists who were\u200c forecasting\u2063 a still\u2063 strong 4.2% increase.<\/p>\n<p>\u201cEconomic\u200c growth transitioned from resilience to reacceleration this quarter, defying the\u2064 Federal Reserve\u2019s aggressive tightening cycle and tighter financial \u2062conditions,\u201d said Olu \u200cSonola, \u200bhead of U.S. economics at Fitch Ratings. \u201cThe strength of consumer spending \u2062and\u200c the\u2062 boost to growth \u2062from \u2063government spending does not make the\u200c Fed\u2019s job easier over the coming quarters.\u201d<\/p>\n<p>The Fed itself released its own economic projections \u2062following its last\u200d huddle in September.<\/p>\n<p>It now predicts the unemployment rate will\u200c be at \u200b3.8% by the end of this year, the same rate as today. That is \u2064slightly lower\u2062 than the Fed\u2019s June estimate that the economy would close \u200bthe year facing 4.1% unemployment.<\/p>\n<p>Fed officials now see inflation, as gauged by the\u200b PCE index, at 3.3% by the end of the year, compared to a June projection \u2062of 3.2%.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/fed-set-to-keep-interest-rates-steady-after-inflation-holds-steady-at-3-4-in-september\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/p>\n<p> <\/p>\n<h2> Why is the Federal\u200b Reserve open to adjusting its policies and not ruling out future rate hikes, despite keeping <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/central-banks-raise-rates-again-as-fed-drives-global-inflation-fight\/\" title=\"Central banks raise rates again as Fed drives global inflation fight\">interest rates steady<\/a> for now<\/h2>\n<p><span>  Is \u2063picking up again. This suggests that the Fed\u200c is not ruling out future rate hikes entirely, but is instead taking a data-driven approach to its decision-making.<\/p>\n<p>The central bank has been steadily increasing interest rates for more than a year,\u2063 as a means to combat \u200dinflation and ensure price stability. The recent stabilization in inflation figures\u2063 is \u2064seen as a positive sign, indicating that the Fed&#8217;s efforts have been effective to a certain extent. However, the numbers are still above the Fed&#8217;s target of 2%, which means that there is still work to be done.<\/p>\n<p>The decision\u200c to keep interest rates steady at \u200cthis meeting is expected to be influenced by various \u200dfactors, including \u200cglobal economic\u2063 conditions, trade tensions, and overall market stability. The Fed is keen to avoid market volatility and is cautious in its approach to policy\u200c tightening. The recent volatility\u2062 in global markets, coupled with uncertainties surrounding trade negotiations, adds to the Fed&#8217;s reasons for maintaining a wait-and-see stance.<\/p>\n<p>While investors and economists \u200bwidely expect interest rates to remain \u200bunchanged, the possibility \u200cof future rate hikes has not\u2062 been completely ruled\u2063 out. Powell&#8217;s comments suggest that the Fed is open to adjusting its policies if the data supports it. This flexibility allows the central bank to navigate the \u2063delicate balance between stimulating economic growth and preventing inflationary pressures.<\/p>\n<p>Overall, the Federal Reserve is set \u200bto keep its interest rates steady in its upcoming meeting, with the goal of \u2062carefully managing inflation concerns. The stabilization\u200d in inflation figures provides some relief, but the \u2064central bank remains\u2063 cautious and vigilant in its approach. The Fed will continue to monitor economic data and market developments to make informed decisions on future rate hikes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>surprise or disrupt the financial markets. The focus of the meeting will be on evaluating the current inflation situation and determining if any adjustments to the interest rate are necessary. The Federal Reserve aims to maintain stability and transparency in its decision-making process.<\/p>\n","protected":false},"author":1,"featured_media":2082018,"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-2082017","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\/2082017","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=2082017"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2082017\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2082018"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2082017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2082017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2082017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}