Fed Chair Jerome Powell: A Rate Hike Is ‘Unlikely,’ But There Is a Scenario of No Rate Cuts

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After keeping interest rates unchanged at 23-year highs, Federal Reserve Chair Jerome Powell told reporters that “it’s unlikely the next policy rate move will be a hike.” Powell pointed to a lack of further progress in bringing inflation down to 2% and noted that the path forward is “uncertain.” He also dismissed talk of stagflation and outlined economic scenarios in which the Fed would consider cutting rates, holding steady, or hiking.

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24 COMMENTS

  1. The Fed knows there's nothing they can realistically do, but obviously they can"t admit that. Unless they go completely berserk and raise the federal funds rate sky high, inflation will continue to rise. Sure, it will bankrupt the government, but our government needs a good cold reset anyway…

  2. Shrinkflation stagflation inflation it’s all from 0% interest rates from bailouts in 08 train takes a great long time to get rolling Covid and inflation is here to stay .GDP growth has shrunk in real terms but it’s transitory raise rates to 10% for a bit and inflation will go to 2%😊

  3. Raise the rate before the entire middle class is on social services programs. Powell knows the true Inflation rate is much higher then the numbers being reported. Could be north of 10 %.

  4. They only focus on demand side inflation control but ignore supply side inflation control. For example more affordable energy, less red tape control, expedite production holdups, more cohesive society, better relations with trade partners, efficiency measures, cut gov spending. But they don't do that.

Comments are closed.