The Fed will stop raising rates well before the U.S. "The SLOOS (Senior Loan Officer Opinion Survey) has been telling us for more than a year the credit conditions are tightening."ģ:07 PM ET: "If we see inflation coming down credibly, sustainably, we don't need to stay restrictive," Powell said. "Of course, we're still watching the situation carefully," he said. "However, if the Fed pauses again in September after two more jobs and CPI reports, it will be difficult to justify a later move and today may well be the final hike."ģ:19 PM ET: Withdrawal of Russia from the Black Sea grain initiative is a cause of concern, but Powell doesn't expect it to have a big effect on monetary policy.ģ:16 PM ET: Next year, the Fed could cut rates while it's still shrinking its balance sheet, Powell said.ģ:10 PM ET: "Things have settled down" in the banking sector. "The Fed Funds Futures currently projects a pause with a 50% chance for another hike in November," said Yimin Xu on behalf of Cestrian Capital Research. Since the last meeting, economic data has generally come in as the committee expected, he said. The Federal Open Market Committee will take a meeting-by-meeting approach in deciding monetary policy, and has not decided on a path of raising at every other meeting. As it is, the policy rate is restrictive, he said. "Or we could decide to maintain" the rate. "It's possible" that the central bank will raise rates again at the September meeting if the data warrant it, he said. "The process of getting inflation down to 2% has a long way to go," Federal Reserve Chair Jerome Powell said during his post-monetary policy meeting press conference.
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