We apologize, but this video has failed to load.“The Committee is highly attentive to inflation risks … Ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 per cent over time,” the Fed said in a statement nearly identical to the one it issued at its November meeting.
The new statement, approved unanimously, was released after a meeting at which officials scaled back from the three-quarters-of-a-percentage-point rate increases that were delivered at the last four gatherings. The Fed’s policy rate, which began the year at the near-zero level, is now in a target range of 4.25 per cent to 4.50 per cent, the highest since late 2007.Article content
U.S. stocks turned negative following the release of the policy statement. In the U.S. Treasury market, which plays a key role in the transmission of Fed policy decisions into the real economy, yields on the two-year and 10-year notes rose. The dollar edged higher against a basket of currencies. “Taken together, today’s statement and economic projections tell a simple, but persuasive story: this Fed isn’t prepared to ‘pivot’ in any meaningful way until it sees sustained and conclusive evidence of a reversal in inflationary pressures,” said Karl Schamotta, chief market strategist at Corpay.
Fed Chair Jerome Powell is scheduled to hold a news conference at 2:30 p.m. EST to provide further details on the policy meeting, which was the last of 2022.Article content
Somebody send out the bat signal to Dr Thomas Sowell.
Good. Rate is still too low, below inflation rate.
Stall, then whiplash into recession due to the rate increases!!
bullshiite ..