The new date is Nov 30, 2022, 02:15pmEST.
A reprieve from the Fed's most aggressive interest rate hikes in four decades is on the horizon as soon as next month as investors pounce for any signs of progress from Powell in his war on inflation.
Powell spoke earlier this month.
The Federal Open Market Committee is expected to make a decision on rates on December 14.
The S&P 500 and tech-laden Nasdaq rose 0.8% and 0.9%, respectively, after Powell said he was optimistic.
Even though the market is pricing in a 50-basis-point increase in the federal funds rate by the end of the year, Goldman's strategists are forecasting a peak federal funds rate of 5% to 5% in May following three more 25 basis increases.
The core personal consumption expenditures index, Powell's favored metric for measuring inflation, currently stands at 6. Powell said that history cautions strongly against premature easing of policies. We will keep going until the job is done.
The US central bank has raised the federal funds rate four times this year, bringing the target rate to 4%, the highest level since 2007. The speech followed the release of mixed economic data. There was a slower pace of hiring among private employers and fewer job vacancies last month, according to metrics tracked by the labor market. The labor market is still too tight for central bankers according to Jeffrey Roach. The Bureau of Economic Analysis has upwardly revised its estimate for the third quarter of the U.S. Gross Domestic Product. The signs of a resilient economy, such as sticky consumer spending and a strong labor market, are bad news for further rate hikes as Powell seeks to use his primary tool to drag the economy down to rein in inflation.
On August 26 and November 2 of this year, the major indexes fell 3% and 2%, respectively, after Powell made it clear that there would be no more rate hikes in the foreseeable future. The stock market has tanked as the Fed has raised rates, with major indexes on pace for their worst annual performance in over a decade.
Powell is haunted by the ghost of Paul Volcker, which could cause the economy to tank.
Does the Federal Reserve want you to lose your job? It'sComplicated. There is a magazine called "Forbes."
All Rights Reserved © 2024
