Fed meeting news

2022 - 9 - 21

Another big interest rate hike is coming, as the Fed battles stubborn ... (NPR)

The Federal Reserve is expected to raise interest rates by another 0.75 percentage points today, as it tries to control runaway prices.

People have grown more confident of that over the summer as the cost of gasoline — with its highly visible price tag — has fallen. "We will keep at it until the job is done," Powell told an audience at the CATO Institute this month. "The Fed has been delivering a 'tough love' message that interest rates will be higher, and for longer, than expected." While the [price of gasoline has dropped sharply](https://www.npr.org/2022/08/06/1115440553/gas-prices-oil-inflation-cost-of-living) from its record high in June, and used cars and airline tickets have gotten somewhat cheaper, other costs continue to climb, including essentials such as rent, groceries and electricity. The central bank has already raised its benchmark rate four times this year — from near zero to about 2.375%. "If unemployment were to stay under, say 5%, I think we could really be really aggressive on inflation," Waller said. But so far, its actions have done little to curb the rapid run-up in prices. "The longer inflation remains well above target, the greater the risk that the public does begin to see higher inflation as the norm, and that has the capacity to really raise the cost of getting inflation down." "If we don't get inflation down, we're in trouble," Fed governor Christopher Waller said this month. Powell argues that's "The Fed will continue to hike rates until it actually restrains the economy and intends to keep rates at those restrictive levels until inflation is unmistakably on its way to 2%," McBride said. What's more, price hikes have spread to goods and services that are not directly affected by the pandemic or the war in Ukraine, suggesting that inflation has gained momentum that may not be quickly reversed.

Fed poised for another sharp rate hike to fight inflation (The Washington Post)

The central bank is expected to raise rates by three-quarters of a percentage point for the third consecutive time.

[misjudging inflation](https://www.washingtonpost.com/us-policy/2022/05/31/inflation-economy-timeline/?itid=lk_inline_manual_15) for much of last year, the Fed has been in a race to push past the “neutral” zone of roughly 2.5 percent, where rates don’t slow or juice the economy, and into “restrictive territory” that dampens consumer demand and gets inflation down. Fed officials had hoped that the latest consumer price index report would show a meaningful drop in inflation, thanks in part to falling gas prices. Policymakers are also set to release a new set of economic projections. He is likely to get questions on inflation, the risks of a recession, future rate hikes — and what the toll of those moves will be. [job market](https://www.washingtonpost.com/business/2022/09/02/august-jobs-report/?itid=lk_inline_manual_7) and consumer spending — two crucial economic engines — have stayed resilient through the Fed’s sharp rate hikes, and Americans may even be [feeling better](https://www.washingtonpost.com/business/2022/09/10/economy-inflation-gas-prices/?itid=lk_inline_manual_7) about inflation. “If it’s [one percentage point], I think that would be interpreted as a statement,” said Justin Wolfers, professor of public policy and economics at the University of Michigan.

Fed Interest Rates Meeting: Live Updates (The New York Times)

The Federal Reserve is expected to deliver a third straight supersize interest rate increase at 2 p.m. on Wednesday as it tries to wrestle stubborn inflation ...

If they show a bigger down-drift this time, it will be a signal that they think a more aggressive hit to the economy will be needed to wrestle inflation lower. In June, for instance, officials didn’t see it happening through 2024, signaling that the path toward more subdued inflation is likely to be a long one. In the Fed’s last set of projections, officials saw unemployment rising to 4.1 percent in 2024. Powell, the Fed chair, has already acknowledged that the adjustment process is likely to bring “pain” to businesses and households. But once the job market slows, joblessness begins to rise and wage growth moderates — a series of events officials think is necessary to get back to slow and steady price gains — the really difficult phase of the Fed’s maneuvering will begin. In June, half of officials expected rates to peak between 3.75 and 4 percent or higher at the end of 2023. But investors expect that the central bank could project an even higher rate by the end of the year — so they will also be parsing the Fed’s first set of economic projections since June for a sense of what comes next. The White House will be paying close attention to the Fed’s outlook for future interest rate increases. Car loans are also expected to climb, but those increases continue to be overshadowed by the rising cost of buying a vehicle and the price you pay for filling it with gas. Investors will parse the economic projections to better understand where the Fed is headed, and will then tune in to watch Jerome H. With fewer consumers and companies competing for the available supply of goods and services, price gains are able to moderate. Central bankers have already raised interest rates considerably in an attempt to slow the economy and temper price increases.

Federal Reserve Meeting Today. What Jerome Powell Might Do. (Barron's)

The Federal Reserve will probably announce another 0.75% interest-rate increase. More important is when the Fed will stop this tightening cycle.

Leading up to the August CPI report earlier this month, many on Wall Street had expected the Fed to slow its pace in September, raising rates by a half point. - Order Reprints - BREAKING

Fed Meeting Live: Fed Raises Interest Rates by 0.75 Percentage ... (The Wall Street Journal)

Matthew Luzzetti, Deutsche Bank: “Continuing with 75bp rate increases still provides the Fed with scope to tighten policy substantially further in the near ...

However, if inflation remains very rapid, it could push the Fed into more tightening including another 75bps rate hike in November.”\n\nGregory Daco, EY Parthenon: “The new economic projections will highlight the Fed’s pain tolerance with real GDP growth likely to be revised significantly lower from the 1.7% median estimate in the June FOMC projections while the unemployment rate could very well be revised to more than 4.5% (from the June projection of 3.9%). As a reference point, we anticipate a recession next year with real GDP growth remaining flat in 2023 and the unemployment rate approaching 5% by midyear.” Piegza, Stifel: “Given the Fed’s heightened rhetoric regarding restoring price stability, the “bedrock” of the economy, and the painful consequences of such, the Committee is likely to materially increase its outlook for rates and near-term inflation, as well as sizably reduce its anticipated growth rate at least in 2022 and early 2023.”\n\nIan Shepherdson, Pantheon Macroeconomics: We expect the Fed to raise rates by 75bp today, with the dotplot likely to show that policymakers then expect a further 100bp of tightening across the final two meetings of the year.

Fed Meeting Live: Top 10 Takeaways From September Meeting ... (Penny Stocks)

Learn To Trade Penny Stocks; Free Access to The Fastest Growing Highest Rated Trading Chatroom. Subscribe. Originally Published: September 21, 2022 2:00 PM ET.

But it isn’t the only potential catalyst to account for this week. When asked if the economy is going into a worldwide recession, FedEx CEO Raj Subramaniam said in an interview with CNBC’s Jim Cramer, “I think so. - Fed says 1.25 percentage point of rate increases remain for the rest of this year and 0.25 percentage point rate hike in 2023. - Fed raises Fed Funds Rate target for the end of year to 4.4%, 4.6% at the end of 2023, 3.9% in 2024 - Fed officials see inflation of 5.4% by the end of 2022, 2.8% at the end of 2023, and 2.3% for 2024 [August CPI data](https://pennystocks.com/featured/2022/09/13/cpi-report-live-inflation-data-is-out-heres-what-it-shows/) and [August PPI data](https://pennystocks.com/featured/2022/09/14/ppi-report-live-producer-price-index-data-is-out-heres-what-it-shows/) showed that peak inflation isn’t here yet, and concerns persist over prices. Reports from companies like FedEx (NYSE: [FDX](https://pennystocks.com/ticker/?symbol=FDX)) and Ford (NYSE: [F](https://pennystocks.com/ticker/?symbol=F)) brought more concerns. The September Federal Reserve Meeting concluded today with the Fed announcement out at 2 PM ET. - Fed officials see 0.2% GDP growth at the end of this year, 1.2% for 2023, & 1.7% for 2024 It will be interesting to see how hawkish or dovish things will be for the rest of 2022 following the September Fed meeting. Plus, details could suggest how the market approaches risk-on assets like Each weighed in on the state of the economy as it related to the performance for the rest of the year.

Live Data Coverage: September Federal Reserve Meeting (DailyFX)

Will the FOMC deliver a 75-bps or 100-bps rate hike today? How will markets react?

Rates markets see a 118% chance of a 75-bps rate hike in September (a 100% chance of a 75-bps rate hike and an 18% chance of a 100-bps rate hike), with additional 50-bps rate hikes fully discounted in November and December. We’ll discuss how markets may react to the September Federal Reserve rate decision starting at 13:45 EDT/17:45 GMT. To an extent, the market is suggesting that the last few Fed rate hikes may materialize in the coming months – with the bulk of the tightening efforts arriving this week, where a 75-bps rate hike is the base case scenario. Now, 100-bps worth of rate hikes are fully discounted, with a 4% chance of a fifth 25-bps rate hike. Having abandoned forward guidance to embrace a data dependent stance, the hotter than expected August US inflation report (CPI) and the strong August US nonfarm payrolls report have bolstered the case for an aggressive tightening effort. - We’ll discuss how markets may react to the September Federal Reserve rate decision starting at 13:45 EDT/17:45 GMT on Wednesday, September 21, 2022.

Fed Meeting Updates: A 0.75-Point Interest-Rate Hike Is Expected (The Wall Street Journal)

Full coverage of the Fed's September meeting and the markets. Sep 21, 2022 at 1:55 pm ET. Share.

government.\n\nIn a statement following the Fed's 0.75 percentage point rate hike, the Committee for a Responsible Federal Budget said "that if interest rates are 75 basis points higher than projections over the next decade, deficits will be $2.1 trillion larger." \n\nFed officials have long argued they do not think about government borrowing costs when setting monetary policy.

Fed Makes Large 75bps Move, Planning Further Hikes In 2022 And ... (Forbes)

That said, the financial markets do see a broad range of outcomes for 2023, but only imply about a 1 in 6 chance of the path the Fed currently envisions. The market views that as less likely, believing that the Fed will more likely cut rates, or hold them steady for 2023 in aggregate. However, the language regarding the U.S. Most policy-makers believe rates will end 2022 in a 4% to 4.5% range. It was a consensus decision, with all policy-makers voting for the move. In its first meeting since July, the Federal Reserve (Fed) raised rates 75bps as markets broadly expected.

Full recap of the Fed's rate hike and Powell's comments on the ... (CNBC)

Stocks rose as Federal Reserve Chair Jerome Powell pledged to boost rates to slow down inflation. The central bank hiked interest rates by 75 basis points for a ...

This increase brings the central bank's benchmark rate to a range of 3% to 3.25%. Central bankers' outlook for the economy and the path of interest rates going forward will likely steal the show. The central bank is raising rates as it attempts to tamp inflation. In 2025, the fed funds rate median target is 2.9%. The Fed increased its year-end rate to 4.4% from the 3.4% expected after the June meeting," Stovall said. "We will keep at it until we're confident the job is done." "Reducing inflation is likely to require a sustained period of below trend growth," Federal Reserve Chair Jerome Powell said in Wednesday's press conference. "The Fed is not anywhere close to a pause or a pivot. The Federal Reserve announced that it will raise its benchmark rate by three-quarters of a percentage point on Wednesday afternoon in its latest attempt to quash inflation. To do that, it'll be looking for three things: a continuation of growth running below trend, movements in labor market showing a return to better balance between supply and demand, and "clear evidence" that inflation is moving back down to 2%. "That's a pretty good summary of where we are with inflation and that's not where we wanted to be," Powell said. Hope for the best, plan for the worst," Powell said.

Fed meeting news

Explore the last week