Fed meeting taking place today Watch the news conference by the chairman and the policy meeting in March live.
The Federal Reserve keeps its three rate cuts for this year. Keep an eye on Powell.
When the Federal Reserve concluded its policy-setting meeting this week, it decided to maintain the current level of interest rates. Most people anticipated the call.
Despite recent mixed economic statistics, particularly stronger readings on inflation over the previous two months, officials anticipate to decrease interest rates by three-quarters of a percentage point by year’s end. They now anticipate greater rates in the upcoming years, nevertheless.
The press conference with Chairman Jerome Powell is now in session. see the live coverage below and see his address below.
The Federal Reserve Is Still Seeking “More Good Data”
Officials from the Federal Reserve are continuing to act with confidence but caution.
The Federal Open Market Committee’s most recent meeting’s announcements had no effect on market expectations for rate reductions. However, officials are confident that the United States will reach a point this year where inflation is steadily approaching the 2% objective, indicating that interest rates should be lowered.
Powell is keeping an eye out for economic cracks, but there isn’t much to go on.
Recent batches of economic statistics have shown contradictory signals from the US economy. Divergent signals can be found in some cases, including the occupations data, even within individual reports.
The chair of the Federal Reserve, Jerome Powell, stated that although he is keeping an eye out for any warning indications in the employment data, overall labor market trends appear to be in “good shape” at this time.
Powell states that a robust labor market wouldn’t prevent rate cuts.
Officials from the Federal Reserve still anticipate interest rate reductions this year. Furthermore, those cuts remain available even in the event that the American job market continues to be strong.
Strong hiring by itself wouldn’t be a justification for delaying rate reductions. No, not by itself, stated Federal Reserve Chair Jerome Powell on Wednesday.
According to Powell, it would be one thing if workers were receiving pay while also increasing inflationary pressures through their spending. However, it isn’t actually the case.
The US labor market held up well last year, while inflation kept declining.
The Fed Chair stated, “You saw last year, very strong hiring, hiring and inflation coming down quickly.” “With the labor force expanding, we now have a better understanding that supply side healing played a significant role in that.”
Powell stated, “So, strong job growth by itself is not a reason for us to be concerned about inflation.”
