Fed raises rates a quarter point, expects 'ongoing' increases
Source: CNBC
The Federal Reserve on Wednesday raised its benchmark interest rate by a quarter percentage point and gave little indication it is nearing the end of this hiking cycle.
Aligning with market expectations, the rate-setting Federal Open Market Committee boosted the federal funds rate by 0.25 percentage point. That takes it to a target range of 4.5%-4.75%, the highest since October 2007.
The move marked the eighth increase in a process that began in March 2022. By itself, the funds rate sets what banks charge each other for overnight borrowing, but it also spills through to many consumer debt products. The Fed is targeting the hikes to bring down inflation that, despite recent signs of slowing, is still running near its highest level since the early 1980s.
The post-meeting statement noted that inflation “has eased somewhat but remains elevated,” a tweak on previous language.
“Inflation data received over the past three months show a welcome reduction in the monthly pace of increases,” Fed Chairman Jerome Powell said in his post-meeting news conference. “And while recent developments are encouraging, we will need substantially more evidence to be confident that inflation is on a sustained downward path.”
Read more: https://www.cnbc.com/2023/02/01/fed-rate-decision-february-2023-quarter-point-hike.html
Article updated.
Previous article -
The move marked the eighth increase in a process that began in March 2022. By itself, the funds rate sets what banks charge each other for overnight borrowing, but it also spills through to many consumer debt products. The Fed is targeting the hikes to bring down inflation that, despite recent signs of slowing, is still running near its highest level since the early 1980s.
The post-meeting statement noted that inflation “has eased somewhat but remains elevated,” a tweak on previous language. Markets, however, were looking to this week’s meeting for signs that the Fed would be ending the rate increases soon. But the statement provided no such signals. Stocks sold off in the wake of the announcement, with the Dow Jones Industrial Average tumbling more than 300 points.
The document included language noting that the FOMC still sees the need for “ongoing increases in the target range.” Market participants had been hoping for some softening of the phrase, but the statement, approved unanimously, kept it intact. The statement did alter one part when describing what will determine the future policy path.
Original article and headline -
The Federal Reserve on Wednesday released its decision on interest rates following its two-day meeting.
This is breaking news. Please check back here for updates.
= new reply since forum marked as read
I think some of these "analysts" keep trying to shoe-horn their past theories and practices into a freak economic situation and they keep getting burned over and over. You see it with the wild swings and misses that have happened the past 2 years when it comes to all kinds of predictions - for the UE rate, the GDP, the CPI, and yes even inflation (as well as other indicators).
I even found an interesting article last week that brought up the "return" of the concept of the "money supply", its assumed role in the past as a major "cause" for fueling inflation, and how that was finally debunked. However it might finally be a truer measure for the current bizarre economic circumstance (although it is actually being handled with these interest rate increases too).
A little soliloquy here with progree - https://www.democraticunderground.com/10143024534#post23
GOP's hopes for a recession
Last edited Wed Feb 15, 2023, 02:08 PM - Edit history (3)
CPI - because I've got a pretty new graphLast 6 months ANNUALIZED:
CPI: +1.9%
CORE CPI: +4.6% < == this is still high. Last 3 months: 3.2% annualized
CPI news release - https://www.bls.gov/news.release/cpi.nr0.htm
CPI - https://data.bls.gov/timeseries/CUSR0000SA0&output_view=pct_1mth
CORE CPI - http://data.bls.gov/timeseries/CUSR0000SA0L1E&output_view=pct_1mth
UPDATE: the 2/14/23 CPI report (also, on 2/10/23, the BLS revised CPI numbers going back 5 years)
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PCE - Personal Consumption Expenditures price index -- historically the Fed has targeted the Core PCE (but they've got a fancy new favorite supercore one)
PCE: https://www.democraticunderground.com/10143025190#post11
Sorry I only have monthly percent change number for the last 5 months at the moment
Aug Sep Oct Nov Dec
0.3 0.3 0.4 0.1 0.1 PCE
0.6 0.5 0.3 0.2 0.3 CORE PCE
Instructions for digging further back are at the above link
PCE Report and tables: https://www.bea.gov/news/2023/personal-income-and-outlays-december-2022
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PPI - Producer Price Index (wholesale prices)
https://www.democraticunderground.com/111695059#post1
Last 6 months ANNUALIZED:
PPI: -0.2%
CORE PPI: +2.6%
Monthly percent changes from prior month:
Monthly percent changes from prior month:
# Latest PPI summary http://www.bls.gov/news.release/ppi.nr0.htm
# Producer prices front page: http://www.bls.gov/ppi/
# Producer Price Index (PPI), seasonally adjusted
http://data.bls.gov/timeseries/WPSFD4?output_view=pct_1mth
# OLD CORE PPI - Producer Price Index, seasonally adjusted - Final demand goods less foods and energy -
http://data.bls.gov/timeseries/WPSFD413?output_view=pct_1mth
# CORE PPI - Producer Price Index, seasonally adjusted - Final demand goods less foods. energy. and trade services -
http://data.bls.gov/timeseries/WPSFD49116?output_view=pct_1mth
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I'll work on doing the PCE and PPI graphs the same as I did for the CPI graph: red for the regular one and blue for the core, and on the regular and core on the same graph.
Edit - Added links to the reports and data for each
ExxonMobil reported $56 billion profit in 2022. In years before, a $16 billion profit ($4 billion per quarter) was considered "excessive".
But unless and until the need for money is removed from the election process, there won't be any "windfall profit" taxes or anything else that impacts them. 
By Chris Isidore, CNN
Updated 11:02 AM EST, Tue January 31, 2023
New York CNN Business — ExxonMobil’s earnings slowed from a peak earlier in the year but the oil giant still reached a full-year record profit more than double what it reported a year ago.
The company earned adjusted income of $14 billion in the quarter, down from the record $18.7 billion it earned in the third quarter, but it was up from $8.8 billion in the fourth quarter of 2021. That was also better than the forecast from analysts surveyed by Refinitiv.
The solid fourth quarter lifted full-year earnings to $59.1 billion from $23 billion in 2021, and well above the previous record net income of $45.2 billion it reported for 2008, the year that saw the record high for oil and US gasoline prices before the records set last year.
The company was helped by soaring oil prices following Russia’s invasion of Ukraine nearly a year ago. But oil prices have been coming down from the peak reached in June, and are now down to pre-invasion levels. Oil companies such as ExxonMobil have faced criticism from the White House and some members of Congress for taking much of the profit and using it to repurchase shares and increase dividend, rather than increase production.
(snip)
Used to be "$4 billion a quarter" was obscene... Now they are up to $12 - $14 a quarter (on average). In ExxonMobil's case, they had one quarter where they had almost $19 billion profit for a quarter.
Like if a company reports more than $10 billion in profit they have to pay like 70% tax on all billions made after that. It wouldn't solve a lot of our problems but it would definitely make a dent! It's way past time for this shit to end. 