Federal Reserve:Meetings/2023 February 01: Difference between revisions

Federal Reserve:Meetings/2023 February 01 (view source)

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 == Meeting Results ==
+The FED decided to do a rate hike of 0.25 bps, to raise the target range for the federal funds rate to 4.5% to 4.75%. The market reacted positively to the release, due to hopes than inflation in coming down and the FED rate hike cycle is near the end. <ref>https://www.federalreserve.gov/monetarypolicy/files/monetary20230201a1.pdf</ref>
+'''Notes:'''
+* They consider they need to remain restrictive for some time,  2 more rate hikes could be appropiate for now.
+* Financial conditions over the long term is their focus, not short term movements.
+* Rate cuts in 2023 are not in plans with current data
+* Disinflation has been on the goods sector in current data, and housing inflation expected to slow in second half of 2023.
+* Services ex housing is still dont seeing desinflation, which means more job need to be done. Need better labor market balance to achive it.
+* Going dorward rate hikes will be data dependent.
+* Accross yield curve, real rates are now positive which is restricitve. Still considering how restrictive is enough.
+* Powell consider path to soft landing is posible. That is their base case.
 == Assessment ==