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Federal Reserve:Meetings/2023 July 26: Difference between revisions
Federal Reserve:Meetings/2023 July 26 (view source)
Revision as of 17:04, 27 July 2023
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<ref>https://www.wsj.com/articles/transcript-fed-chief-powells-postmeeting-press-conference-5ed40b07</ref> | <ref>https://www.wsj.com/articles/transcript-fed-chief-powells-postmeeting-press-conference-5ed40b07</ref> | ||
==== Future Rate | ==== Future Rate Decisions ==== | ||
* Haven’t made any decisions about any future meetings including the pace at which they would consider hiking, It is certainly possible to raise funds again at the September meeting if the data warranted and it’s possible to choose to hold steady at that meeting. | * Haven’t made any decisions about any future meetings including the pace at which they would consider hiking, It is certainly possible to raise funds again at the September meeting if the data warranted and it’s possible to choose to hold steady at that meeting. | ||
* June data broadly consistent with expectations, meaning the path of 2 rate hikes was still possible. | * June data broadly consistent with expectations, meaning the path of 2 rate hikes was/is still possible, because that what they projected. | ||
* Rate cuts wont happen this year, and next year rate cuts will be dependent about the confidence that inflation is, in fact coming down to 2 percent goal. | * Rate cuts wont happen this year, and next year rate cuts will be dependent about the confidence that inflation is, in fact coming down to 2 percent goal. | ||
* There is a possibility of cutting rates at some point but continuting with QT as part of balance sheet normalization, but will be depending on where we are in the cycle | * There is a possibility of cutting rates at some point but continuting with QT as part of balance sheet normalization, but will be depending on where we are in the cycle | ||
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* Very likely to have some softening of labor-market conditions, consistent with having a soft landing. But you would have some softening in labor-market conditions that’s still likely as we go forward with this process. | * Very likely to have some softening of labor-market conditions, consistent with having a soft landing. But you would have some softening in labor-market conditions that’s still likely as we go forward with this process. | ||
* By so many indicators, labor market demand is cooling | * By so many indicators, labor market demand is cooling, but still not consistent with 2% inflation. But t’s gradually slowing and that’s a good prescription for getting where we want to get. | ||
* Wages are probably an important issue, going forward. Labor market conditions broadly are going to be an important part of getting inflation back down and that’s why we think we need some further softening in labor market conditions. | * Wages are probably an important issue, going forward. Labor market conditions broadly are going to be an important part of getting inflation back down and that’s why we think we need some further softening in labor market conditions. | ||