Fed Holds Rates Steady, Expects Economic Growth, Hiring, and Inflation to Slow

[mystery-ak]

Fed Holds Rates Steady, Expects Economic Growth, Hiring, and Inflation to Slow

John Carney 1 Nov 2023

Federal Reserve officials voted to leave the central bank’s benchmark interest rate unchanged, saying that it expects tighter financial conditions will weigh on economic activity, hiring, and inflation.

The Fed said on Wednesday that it would hold its benchmark rate at a range of 5.25 percent to 5.50 percent, the range it set at its July meeting and the highest since the Fed cut rates at the summer of 2007.

“Recent indicators suggest that economic activity expanded at a strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation remains elevated,” the Fed said in a statement announcing the interest rate policy. “The U.S. banking system is sound and resilient. Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain.”

more
https://www.breitbart.com/economy/2023/11/01/fed-holds-rates-steady-despite-signs-of-rising-inflation-risks/

[catfish1957]

Almost the entire financial community is ignoring the fact the massive drop interest rate in the Fed 10/30 year bonds is a function of demand rather traditional fiscal factors.  In fact I am trying to remember the last time I saw a 40 basis point loss in 2 days for both indicies.

Our mental midgets in DC have no idea that at and when the $USD is not a flight to safety anymore, this house of cards falls quite swiftly.

[LMAO]

Inflation will slow while economic growth slows

But sinking the economy just to control inflation doesn’t seem like a very good strategy to me

[mountaineer]

The economy is great. Honest.

Thomas Massie
@RepThomasMassie
So much for reaching the stars… One week of interest on the national debt is roughly equivalent to NASA’s entire annual budget. (~$20 billion)
8:45 AM · Nov 10, 2023