Fed declines to hike, but points to rates staying higher for longer

[BumRushDaShow]

Last edited Wed Sep 20, 2023, 06:48 PM - Edit history (1)

Source: CNBC

Published Wed, Sep 20 2023 2:00 PM EDT Updated 2 Hours Ago


The Federal Reserve held interest rates steady in a decision released Wednesday, while also indicating it still expects one more hike before the end of the year and fewer cuts than previously indicated next year.

That final increase, if realized, would do it for this cycle, according to projections the central bank released at the end of its two-day meeting. If the Fed goes ahead with the move, it would make a full dozen hikes since the policy tightening began in March 2022.

Markets had fully priced in no move at this meeting, which kept the fed funds rate in a targeted range between 5.25%-5.5%, the highest in some 22 years. The rate fixes what banks charge each other for overnight lending but also spills over into many forms of consumer debt.

While the no-hike was expected, there was considerable uncertainty over where the rate-setting Federal Open Market Committee would go from here. Judging from documents released Wednesday, the bias appears toward more restrictive policy and a higher-for-longer approach to interest rates.

Read more: https://www.cnbc.com/2023/09/20/fed-rate-decision-september-2023-.html

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Article updated.

Original article -

Published Wed, Sep 20 2023 2:00 PM EDT Updated 1 Min Ago


The Federal Reserve held interest rates steady in a decision released Wednesday, while also indicating it still expects one more hike before the end of the year and fewer cuts than previously indicated next year.

That final increase, if realized, would do it for this cycle, according to projections the central bank released at the end of its two-day meeting. If the Fed goes ahead with the move, it would make a full dozen hikes since the policy tightening began in March 2022.

Markets had fully priced in no move at this meeting, which kept the fed funds rate targeted in a range between 5.25%-5%, the highest in some 22 years. The rate fixes what banks charge each other for overnight lending but also spills over into many forms of consumer debt.

While the no-hike was expected, there was considerable uncertainty over where the rate-setting Federal Open Market Committee would go from here. Judging from documents released Wednesday, the bias appears towards more restrictive policy and a higher-for-longer approach to interest rates.

[Hermit-The-Prog]

1. A better control on current "inflation" would be windfall taxes and gouging taxes.

Higher interest rates fall hardest on those who can least afford them. It's a regressive tax on workers.

[nuxvomica]

3. I thought the standard way to fight inflation was to raise taxes

If there's too much money floating around, taxing the wealthy and corporations would seem to be the right move. I certainly don't have too much money myself.

[oldsoftie]

2. Need some cuts around summer '24.

[nowforever]

4. Interest rate hikes are inflationary

Fed. needs a tool that focuses on greed, the real factor in today's inflation. If cheap money was cause of inflation then how is it that inflation didn't move up during the 11 years of basically 0% interest rates. Volcker raised rates in late 70's and 80's and it caused a recession and did little to reduce inflation, in fact did just the opposite. As cost of energy rises (oil and gas) the cost of everything rises and is a big part of most inflationary periods.

[IbogaProject]

5. Banker profiteering on False-Flation.

This is disgusting.

[yaesu]

6. The Fed holding the economy hostage. Nt