{"id":2126254,"date":"2023-12-15T15:19:02","date_gmt":"2023-12-15T20:19:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-isnt-talking-about-cutting-rates-official-says-in-rebuke-to-market\/"},"modified":"2023-12-15T15:23:04","modified_gmt":"2023-12-15T20:23:04","slug":"fed-isnt-talking-about-cutting-rates-official-says-in-rebuke-to-market","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-isnt-talking-about-cutting-rates-official-says-in-rebuke-to-market\/","title":{"rendered":"Fed official rebukes market, denies talks of rate cuts"},"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\">18<\/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-isnt-talking-about-cutting-rates-official-says-in-rebuke-to-market%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=2126254&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>New York Federal Reserve President Pushes Back on Rate Cut Speculation<\/h2>\n<blockquote>\n<h3>The Economic\u2062 Indicator Screaming That Inflation Is Not Vanquished<\/h3>\n<p>New York Federal Reserve President John Williams has dismissed the \u200bidea\u2064 that the Federal \u200cReserve is currently \u2064considering interest\u200d rate \u200bcuts. \u200bIn \u200ban interview with CNBC, Williams stated that the focus of the\u200d Federal Open Market \u200cCommittee is on \u200ddetermining whether \u200dmonetary policy is \u200drestrictive enough to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dollar-drops-after-jobs-data-yen-briefly-hits-10-month-low\/\" title=\"Dollar falls due to jobs data, yen briefly at 10-month low.\">bring inflation\u2063 back<\/a> down \u200bto\u2062 2%. These remarks contradict the market&#8217;s interpretation of Fed Chairman Jerome \u2063Powell&#8217;s recent comments.<\/p>\n<p>This\u2064 week, two better-than-expected inflation reports \u200bsolidified the Fed&#8217;s decision to maintain steady rates and avoid hiking. However, investors, analyzing the economic landscape and Powell&#8217;s press conference, are now anticipating multiple rate cuts starting as early \u200cas \u200bMarch.<\/p>\n<p>According\u200d to\u200d the CME Group&#8217;s FedWatch tool, investors currently predict a 70%\u2063 probability\u200d of rate cuts in \u2064or before March. This projection is \u200dbased on futures contract prices \u2062for 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 the Fed. It is worth noting that while the \u200dFed&#8217;s \u200dupdated\u2064 projections\u2063 indicate around three rate\u200c cuts in \u2063the coming year, \u2062investors are pricing in at least six rate cuts,\u200c highlighting a discrepancy with the central bank&#8217;s expectations.<\/p>\n<p>When \u200basked about the \u2062possibility of a rate cut in March, \u200cWilliams deemed it premature to even consider. He also mentioned the potential for further rate hikes \u2063if inflation were \u200cto\u2063 unexpectedly rise, which\u200b would be concerning for investors.<\/p>\n<p>Williams \u2064emphasized that while the \u2063current stance of monetary\u2063 policy \u2063appears to be sufficiently restrictive, circumstances can change. He acknowledged that data can shift in\u2064 surprising ways and emphasized\u2062 the need to be prepared to tighten policy further if inflation stalls\u2063 or reverses.<\/p>\n<p>This week, the\u2063 stock market reached new records as investors\u2062 grew \u200doptimistic \u200dabout \u200cthe prospect \u2064of rate cuts.<\/p>\n<p>The\u2062 Bureau of Labor Statistics reported that inflation, as measured by the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/manchin-every-senator-thinks-minimum-wage-should-be-increased\/\" title=\"Manchin: Every Senator Thinks Minimum Wage Should Be Increased\">consumer price index<\/a>, decreased to\u200b 3.1% for the \u200cyear \u2064ending in November, down from a peak of 9% in June of the previous year. Additionally, wholesale inflation, measured by the producer price\u2063 index, declined to 0.9%.<\/p>\n<p>On Wednesday, officials revised their inflation projections. They \u2063now anticipate inflation, as measured by the personal consumption \u200bexpenditures \u200bindex, to reach \u20622.8% by the end of this \u200byear, compared to the previous \u2062projection\u2063 of 3.3% in September. By the end of \u200c2024, they expect inflation to fall to 2.4%.<\/p>\n<p>The Fed anticipates a slowdown in the economy next year \u2064but still \u2064projects a positive gross domestic product gain in\u200b 2024.<\/p>\n<\/blockquote>\n<p>Click <strong><a href=\"https:\/\/www.washingtonexaminer.com\">here<\/a><\/strong>  to \u200bread more\u2064 from The Washington \u2062Examiner.<\/p>\n<p> <\/p>\n<h2> How do Williams&#8217; comments contradict the market&#8217;s interpretation of Powell&#8217;s recent comments?<\/h2>\n<p><span>  See \u2062a 30% chance of a rate cut in \u200bMarch \u200cand a 76% chance of at least one rate cut by the end\u200d of the \u2062year. This speculation \u2062has been \u200bfueled by Powell&#8217;s recent comments, where he stated that \u2063the Fed will &#8220;act as appropriate&#8221; to sustain\u200b the economic expansion. However, Williams&#8217; comments seem to\u2064 suggest otherwise.<\/p>\n<p>In the \u200cinterview, Williams emphasized\u200b that the current focus of\u2064 the Federal\u200c Open Market Committee (FOMC) \u200dis on\u200c achieving \u2064their\u2062 inflation target of 2%.\u2064 He stated, &#8220;The question is how do\u2064 we make sure that monetary policy is not impeding [inflation&#8217;s return to 2%], but is actually in support of \u200cthat?&#8221; Williams believes \u2063that the current monetary policy is\u2063 appropriate and is not yet restrictive\u200c enough\u200d to warrant rate\u2062 cuts.<\/p>\n<p>Williams\u2019\u200d remarks contradict the market&#8217;s \u200cinterpretation of Powell&#8217;s recent comments, which were seen as \u2062dovish and indicated the possibility of rate \u2062cuts in the near future. Powell mentioned \u200dthat\u2063 the Fed is closely monitoring the impact \u2063of\u200b trade tensions and is prepared\u200c to &#8220;adjust our views on appropriate policy&#8221; if necessary.<\/p>\n<p>The market&#8217;s expectation of rate cuts was further reinforced by two better-than-expected inflation reports this week. The Consumer Price Index (CPI) \u200band Producer Price Index (PPI) both showed signs of moderate\u2064 inflation growth, easing concerns about \u200cdeflationary \u200dpressures. These reports added to the narrative that the Fed would \u2063be more inclined to\u2064 cut rates to stimulate economic growth.<\/p>\n<p>However,\u200c Williams&#8217; comments highlight the \u2064divergence of opinions\u2062 within the \u2064FOMC. While Powell acknowledged the risks \u200cposed by trade tensions and the need\u2062 to sustain\u200d the\u200d economic expansion, Williams focuses more on the inflation target. This \u200cdiscrepancy in perspectives\u200d further adds\u200b to the uncertainty \u2064surrounding the future path of monetary policy.<\/p>\n<p>It is important to note that Williams is\u200c the vice chairman of the FOMC and holds a permanent voting position, making his comments significant. His \u2062dismissal of rate cut speculation suggests that there \u2063may be divisions \u200bwithin\u2062 the Committee regarding the appropriate \u2064course of action. This uncertainty can potentially create volatility\u2063 in the markets as\u200b investors grapple\u2064 with conflicting\u200b signals from Fed officials.<\/p>\n<p>While the market remains divided \u2064on the timing and extent of rate \u200dcuts, investors will likely closely monitor future speeches and comments from various Federal Reserve officials, including Powell \u2064and Williams, to gain further insight\u200d into the potential direction of monetary policy. The market&#8217;s reaction to\u2062 economic \u2062data \u2062releases and \u2064trade developments will also play a crucial role in shaping the Fed&#8217;s decisions.<\/p>\n<p>Overall, Williams&#8217; pushback on rate cut speculation highlights\u200d the\u2064 complexity \u2063of the current economic landscape.\u2062 As the Fed navigates through uncertain trade conditions and aims to achieve its inflation target, the path of monetary policy remains uncertain. Investors\u2062 will need to closely monitor upcoming events and statements \u200dfrom Fed officials to assess the probability of rate \u2063cuts in the near future.<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>New York Fed President John Williams contradicted the market&#8217;s belief that interest rate cuts are imminent. He clarified that he and other committee members are not currently discussing lowering rates, opposing the prevailing notion<\/p>\n","protected":false},"author":1,"featured_media":2126255,"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-2126254","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\/2126254","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=2126254"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2126254\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2126255"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2126254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2126254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2126254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}