STORY CONTINUES BELOW THESE SALTWIRE VIDEOS - Federal Reserve Chair Jerome Powell on Friday said the central bank may need to lift interest rates further to finish the job of lowering inflation on a sustained basis.
U.S. GDP grew at a stronger-than-expected 2.4% annualized rate in the second quarter, and data received so far in the third quarter suggests that pace may have accelerated. The Atlanta Fed's GDP Now tool is currently tracking growth in the July-through-September period at 5.9%. That is expected to come down as more data comes in but other forecasts, such as the Blue Chip consensus, have also been trending up since the quarter began.
A key reference point for policymakers is the neutral rate, or the interest rate that neither stimulates nor hinders the economy. Calibrating their policy rate against the estimated neutral rate - which Fed officials as of June estimated at 2.5% - gives officials an idea of just how much pressure they are exerting on the economy."Although inflation has moved down from its peak - a welcome development - it remains too high.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed Chair Powell could signal the likelihood of high rates for longer in closely watched speechJACKSON HOLE, Wyoming (AP) — When Federal Reserve Chair Jerome Powell delivers a high-profile speech Friday in Jackson Hole, Wyoming, many analysts think he could make one thing clear: That the Fed plans to keep its benchmark interest rate at a peak
Source: SooToday - 🏆 8. / 85 Read more »
Bitcoin price range-bound as investors await Fed Chair Powell's speechCryptocurrency prices continued to experience range-bound, sideways trading on Thursday as Fed officials say to expect higher interest rates for longer.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Fed Chair Powell: Two percent will remain our inflation targetFederal Reserve Chair Jerome Powell delivered his speech Friday morning at the economic summit at the Jackson Hole Economic Symposium in Jackson, Wyo. Regarding the Fed's inflation target, Powell said, 'Two percent is, and will remain, our inflation target. We are committed to achieving and sustaining a stance of monetary policy that is sufficiently restrictive to bring inflation down to that level over time.' Powell added, 'We see the current stance of policy as restrictive, putting downward pressure on economic activity, hiring, and inflation. But we cannot identify with certainty the neutral rate of interest, and thus, there is always uncertainty about the precise level of monetary policy restraint.'
Source: YahooFinanceCA - 🏆 47. / 63 Read more »