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The Fed is not slowing down. Another big price hike in the US

The Fed is not slowing down.  Another big price hike in the US

“Job growth has been robust in recent months, and unemployment rates have remained low. Inflation remains high, reflecting pandemic-related supply and demand imbalances, higher food and energy prices, and broader price pressures,” reads the press release following the FOMC decision. .

We still have room for a further rate hike. In the United States, despite the growth rate of interest rates. It will have to go down eventually, Fed Chairman Jerome Powell said during the conference Wednesday after the Fed meeting.

At some point, it will be appropriate to slow the pace of interest rate growth in order to bring inflation down to the 2% target. The Fed chief indicated that there is a great deal of uncertainty around this level of interest rates.

Despite this, we still have room for increases. Data released since our last meeting suggests that the final level of interest rates will be higher than previously expected. Our decisions will be based on all incoming data and its implications for the outlook for economic activity and inflation. He added that we will continue to make decisions from one meeting to the next, communicating with them as clearly as possible.

The Federal Reserve began tightening monetary policy in March of this year in response to rising inflation in the United States. The first increase was only 0.25 percentage points. (range 0.25 – 0.50%). The following months brought worse and worse inflation readings, and the Fed was gaining momentum in terms of raising interest rates with each subsequent meeting.

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In May it was already 0.50 percentage points, then three times after that 0.75 percentage point – In June, July and September. Now in November the Fed added another 0.75 percentage point – As a result, the key interest rate was in a range 3.75-4.0 percent

Prior to the decision, economists had indicated that the Fed raised interest rates for the fourth time in a row by 0.75 percentage points. She was very sure.

– This entire range of movement is also priced in contracts feed fund futures. Therefore, a smaller move would be a huge disappointment for the financial markets and could cause a sell-off in the Dollar. However, the Fed’s future decisions, starting in December, are in doubt and the market is already waiting for signals about the Fed’s peaceful return in the future, Iberi analysts write.

The inflation rate in June reached 9.1 percent in the United States. It was the highest level in more than 40 years. Since then, the price level has slowed down – to 8.5%. In July, 8.2 percent. in September.

US dollar / Polish zloty

  • Purchasing price
    4.7766

  • sale rate
    4.7801

  • the above
    4.7833

  • minute
    4.7147

  • Average exchange rate
    4.7784

  • Reference price
    4.7620




Remember, the Fed raised interest rates in September by 75 basis points (0.75 percentage points) – the key rate range. It was then 3.0-3.25 per cent. He was 14 years old at the most. The macroeconomic forecast that was then published showed interest rates would be at the level of 4.4 percent. At the end of year 22, 4.6 percent at the end of year 23, 3.9 percent at the end of year 24 and 2.9 percent. By the end of June 25, the Fed expected interest rates. In the US it will be at 3.4%. At the end of 2022, 3.8 percent at the end of 2023 and 3.4%. At the end of 2024

EUR / USD

  • Purchasing price
    0.9831

  • sale rate
    0.9833

  • the above
    0.9975

  • minute
    0.9825

  • Average exchange rate
    0.9832

  • Reference price
    0.9874




The September forecast for inflation, GDP and unemployment also showed that US GDP will reach 0.1-0.3% this year. (compared to 1.5-1.9% in the June forecast). In 2023, the range is set at 0.5-1.5 percent. And in 2024 – 1.4-2%.

In contrast, PCE inflation this year is expected to reach 5.3-5.7 percent. (5-5.3% according to June forecast). In 2023, the price dynamics is expected to reach 2.6-3.5 percent. And in 2024, the rate is between 2.1 and 2.6 percent, and the federal inflation target is 2%.

Monetary policy moves to a level that will be tight enough to bring inflation back to 2%. Fed Chair Jerome Powell said at a conference that followed the Fed’s September meeting.

US dollar / Japanese yen

  • Purchasing price
    147.7690

  • sale rate
    147.7990

  • the above
    148.1640

  • minute
    145.6980

  • Average exchange rate
    147.7840

  • Reference price
    148.1680




We will continue to make our decisions by meeting and communicating our thinking as clearly as possible. Restoring price stability will require maintaining a restrained political position for some time. He added that historical records strongly caution against premature loosening of the policy.

US dollar / British pound

  • Purchasing price
    0.8767

  • sale rate
    0.8765

  • the above
    0.8773

  • minute
    0.8647

  • Average exchange rate
    0.8766

  • Reference price
    0.8710




DJIA

  • publicly
    32,557.79

  • the above
    32641.36

  • minute
    32497.52

  • reference value
    32653.20

  • work hours
    14:30 – 21:00




Nasdaq

  • publicly
    10,878.29

  • the above
    10,885.69

  • minute
    10,742.64

  • reference value
    10,890.85

  • work hours
    14:30 – 21:00




SP500

  • publicly
    3849.04

  • the above
    3,852.90

  • minute
    3 823.65

  • reference value
    3,856.10

  • work hours
    14:30 – 21:00




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