Two years after raising interest rates at a near-record pace, to more than 5%, the Federal Reserve is finally poised to begin to ease policy. Fed Chair Jerome Powell could not have been clearer in his major speech at Jackson Hole last week. Moving away from the all out fight against inflation that he outlined at the same venue in 2022, Chair Powell declared “the time has come for policy to adjust.” The question for investors is no longer when the Fed will begin to cut policy rates, but by how much and how quickly... All this, and more, in RockCreek's newsletter ⬇ https://lnkd.in/eQ33cm53
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The Federal Reserve has decided to keep interest rates steady, with Chairman Jerome Powell suggesting that a rate cut could be considered in September. This decision comes amid mixed economic signals and ongoing concerns about inflation and economic growth. Investors are closely watching for further guidance from the Fed on its monetary policy direction. #FederalReserve #InterestRates #EconomicPolicy
Fed holds rates steady, Powell says September cut 'could be on the table'
finance.yahoo.com
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📣 Fed Chair Jerome Powell has stated that the Federal Reserve isn't ready to start cutting interest rates just yet. ◾The Fed remains cautious about inflation risks and does not want to ease up too quickly. ◾They are waiting for more confidence that inflation is moving sustainably towards their 2% target before considering rate cuts. ◾Powell emphasized that lowering rates too quickly could risk losing the fight against inflation, whereas waiting too long could jeopardize economic growth. How does this affect you and your investing strategy? 🔹While we might not see rate cuts in the immediate future, the Fed's cautious stance reflects its commitment to stable economic growth and controlled inflation. 🔹The timing of future rate cuts will be based on incoming data, not a preset course. As investors, we need to stay informed and adaptable. 🔹Remember, changes in interest rates can impact various asset classes differently. Always consider the potential impacts on your portfolio and adjust your strategy accordingly. #FedUpdate #InterestRates #InvestingStrategy Source: https://lnkd.in/gukPRt7i
Powell reinforces position that the Fed is not ready to start cutting interest rates
cnbc.com
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🔍What's Next for the Federal Reserve? The Federal Reserve has held its key interest rate steady for the seventh consecutive meeting amid softer inflation reports. Here are the key points: 📉Inflation & Labor Market: Lower-than-expected consumer and wholesale inflation; labor market rebalancing. 📅Rate Cut Predictions: Economists forecast the earliest potential rate cut in September, dependent on continued economic data. 📈 Market Reaction: Trader expectations for a September rate cut have surged to 70%. The S&P 500 hit new highs. 📊Cautious Approach: Fed Chair Jerome Powell and other officials emphasize a data-driven strategy, seeking confidence in sustained 2% inflation before cutting rates. Feel free to reach out for a consultation on how to navigate these developments. #FederalReserve #InterestRates #Economy #Finance #Investing
What's Next for the Federal Reserve as Expectations for Interest Rate Cuts Mount?
investopedia.com
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The Federal Reserve had their third meeting this year to address the interest rate decision and the economy. Fed will keep rates the same due to lack of progress on inflation. The current Fed Funds rate has been between 5.25%-5:50% since July of 2023. Powell highlighted how they feel policy is restrictive enough to get to their 2% mandate & how it’s unlikely the next meeting will consider a rate hike. He also denoted the fact we are in a stagflationary environment. Expressing how we still have a strong labor market, low unemployment rate, & moderate growth in the economy. The next meeting is set for June 11th-12th. #federal #reserve #interest #rate #decision #unchanged #inflation #labor #market #unemployment #housing #economy #supply #demand
Fed keeps rates steady as it notes 'lack of further progress' on inflation
cnbc.com
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📣 Fed Chair Jerome Powell has stated that the Federal Reserve isn't ready to start cutting interest rates just yet. ◾The Fed remains cautious about inflation risks and does not want to ease up too quickly. ◾They are waiting for more confidence that inflation is moving sustainably towards their 2% target before considering rate cuts. ◾Powell emphasized that lowering rates too quickly could risk losing the fight against inflation, whereas waiting too long could jeopardize economic growth. How does this affect you and your investing strategy? 🔹While we might not see rate cuts in the immediate future, the Fed's cautious stance reflects its commitment to stable economic growth and controlled inflation. 🔹The timing of future rate cuts will be based on incoming data, not a preset course. As investors, we need to stay informed and adaptable. 🔹Remember, changes in interest rates can impact various asset classes differently. Always consider the potential impacts on your portfolio and adjust your strategy accordingly. #FedUpdate #InterestRates #InvestingStrategy Source: https://lnkd.in/eiSFF2TK
Powell reinforces position that the Fed is not ready to start cutting interest rates
cnbc.com
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📣 Fed Chair Jerome Powell has stated that the Federal Reserve isn't ready to start cutting interest rates just yet. ◾The Fed remains cautious about inflation risks and does not want to ease up too quickly. ◾They are waiting for more confidence that inflation is moving sustainably towards their 2% target before considering rate cuts. ◾Powell emphasized that lowering rates too quickly could risk losing the fight against inflation, whereas waiting too long could jeopardize economic growth. How does this affect you and your investing strategy? 🔹While we might not see rate cuts in the immediate future, the Fed's cautious stance reflects its commitment to stable economic growth and controlled inflation. 🔹The timing of future rate cuts will be based on incoming data, not a preset course. As investors, we need to stay informed and adaptable. 🔹Remember, changes in interest rates can impact various asset classes differently. Always consider the potential impacts on your portfolio and adjust your strategy accordingly. #FedUpdate #InterestRates #InvestingStrategy Source: https://lnkd.in/gGVhYp5z
Powell reinforces position that the Fed is not ready to start cutting interest rates
cnbc.com
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How will the market react when the Fed cuts interest rates? The market’s reaction when the Federal Reserve dropped interest rates after the 1994-1995 tightening cycle could be a guide going forward.
How will the market react when the Fed cuts interest rates?
invesco.com
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The Fed approaches a new phase of interest rate policy Markets head lower following a hawkish rate cut by the U.S. Federal Reserve. We discuss the reasons behind the Fed’s shift and if investors really need to fear higher rates caused by stronger growth.
The Fed approaches a new phase of interest rate policy
https://www.rbcwealthmanagement.com/en-asia
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Fed Chair Jerome Powell recently stated that the Federal Reserve isn't ready to start cutting interest rates just yet. ◾The Fed remains cautious about inflation risks and does not want to ease up too quickly. ◾They are waiting for more confidence that inflation is moving sustainably towards their 2% target before considering rate cuts. ◾Powell emphasized that lowering rates too quickly could risk losing the fight against inflation, whereas waiting too long could jeopardize economic growth. How does this affect you and your investing strategy? 🔹While we might not see rate cuts in the immediate future, the Fed's cautious stance reflects its commitment to stable economic growth and controlled inflation. 🔹The timing of future rate cuts will be based on incoming data, not a preset course. As investors, we need to stay informed and adaptable. 🔹Remember, changes in interest rates can impact various asset classes differently. Always consider the potential impacts on your portfolio and adjust your strategy accordingly. #FedUpdate #InterestRates #InvestingStrategy Source: https://lnkd.in/gmjUqTrU
Powell reinforces position that the Fed is not ready to start cutting interest rates
cnbc.com
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"The Federal Reserve’s monetary policy committee once again held constant the federal funds rate at a top target of 5.5% at the conclusion of its July meeting. When will the Fed cut? If the incoming inflation yield no upside surprises, a rate cut in September now appears possible, if not likely. However, the NAHB forecast remains for rate cuts to begin in December. This is a conservative outlook given the upside surprise to inflation at the start of the year and the possibility of a disappointing inflation report before the Fed’s September meeting. Fed officials have repeatedly warned that they would prefer to cut somewhat too late, rather than move too early and undermine long-term inflation expectations and central bank credibility. Nonetheless, a rate cut before the end of the calendar year seems all but certain." NAHB Chief Economist Robert Dietz provides more insights on expectations going forward in the below post.
Federal Reserve Rate Cuts in View
https://eyeonhousing.org
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