The Fed is expected to raise interest rates again
0For the fourth meeting in a row, the Federal Reserve is generally anticipated to increase its benchmark interest rate on Wednesday. Markets anticipate that the central bank would moderate its hawkish approach in order to reduce inflation and limit the rate of rate increases.
"We might find ourselves, and the markets have certainly priced this in, with another 75-basis-point increase," Daly said at a meeting of the University of California, Berkeley's Fisher Center for Real Estate & Urban Economics' Policy Advisory Board last week. "But I would really recommend people don't take that away and think, well it's 75 forever."
At the September meeting, several officials thought that the Fed may eventually halt the rate of rate increases. The Fed is aware that inflationary pressures are moderating since third-quarter wage and salary growth was less than anticipated. With job vacancies dropping significantly in August and the rate of employment terminations becoming down, the job market is also cooling.
The 200,000 nonfarm payrolls that were created in October, down from the 263,000 jobs added in September, are the projections made by economists for Friday's employment report. The price consumption expenditures index (PCE), the Fed's favoured gauge of inflation, increased by 5.1% in September and 6.2% on a headline basis without accounting for volatile food and energy costs. Despite a decrease from 7%, the Fed's goal inflation rate of 2% is still far away. According to the Fed's forecast, interest rates will need to increase to 4.5% to 5% in 2019.
Source: https://finance.yahoo.com/news/fed-expected-to-again-raise-rates-223821317.html
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