Fed officials unanimous on maintaining restrictive policy until inflation cools

HousingWire010 mins

Key Takeaways:

– Federal Reserve policymakers were divided on whether inflation was high enough to bring the target federal funds rate down to the 2% target.
– A majority of participants believed that one more increase in the target federal funds rate would likely be appropriate.
– All participants agreed that the Fed’s monetary policy should remain restrictive until inflation is moving down sustainably.
– Policy decisions will be based on incoming data and the balance of risks.
– More data indicating that inflation pressures are abating is needed to be more confident in inflation returning to 2%.
– Significant progress in reducing inflation hasn’t been seen in core services prices, excluding housing.
– The benchmark interest rate was left unchanged at 5.25%-5.5% in the September meeting.
– The 10-year Treasury yield rose to 4.66% after the meeting, reflecting the anticipated rate increases.
– Two more FOMC meetings are scheduled this year, with the next one on October 31.
– Federal Reserve Governor Michelle Bowman believes interest rates may need to rise further and stay higher for longer to reach the inflation goal.
– Domestic spending continues at a strong pace and the labor market remains tight, suggesting the need for a more restrictive policy rate.

HousingWire:

Federal Reserve policymakers saw eye to eye that policy should remain restrictive for some time but were divided on whether inflation was high enough to bring the target federal funds rate down to the 2% target in their September meeting.

“A majority of participants judged that one more increase in the target federal funds rate at a future meeting would likely be appropriate, while some judged it likely that no further increases would be warranted,” minutes of the Federal Open Market Committee (FOMC) released on Wednesday showed.

All participants of the committee meeting agreed that the Fed’s monetary policy “should remain restrictive for some time until the committee is confident that inflation is moving down sustainably toward its objective.”

Minutes noted that all members of the rate-setting committee agreed that they should proceed carefully and that policy decisions at every meeting would be based on incoming data, taking into account “the balance of risks.”

Participants stressed that they would need to see more data indicating that inflation pressures were abating to be more confident that inflation was on course to return to 2% over time. 

Officials also said that significant progress in reducing inflation hadn’t materialized in the prices of core services, excluding housing. 

The meeting ended with the FOMC leaving the benchmark rate unchanged in the target range of 5.25%-5.5% – the highest level in 22 years. Since the central bank started its campaign to tame inflation in March 2022, the committee raised its key interest rate 11 times. 

Since the September FOMC meeting, the 10-year Treasury yield rose to 4.66% as of Oct. 10, pricing in the rate increases policymakers indicated then. 

The FOMC has two more meetings scheduled this year. Officials are scheduled to meet on Oct. 31 and announce the result of their two-day meeting on Nov. 1.

Most recently, Federal Reserve Governor Michelle Bowman noted that interest rates may need to rise further and stay higher for longer than previously expected to get inflation down to the central bank’s goal of 2%.

While Bowman didn’t comment on her expectations for the FOMC’s next rate decision, the governor noted domestic spending has continued at a strong pace and the labor market remains tight. 

“This suggests that the policy rate may need to rise further and stay restrictive for some time to return inflation to the FOMC’s goal,” Bowman said Wednesday during an event in Marrakech, Morocco, on the sidelines of the World Bank and International Monetary Fund (IMF) annual meetings.

Source link

Property Chomp’s Take:

So, let’s talk about the

element. You might have come across this term while browsing through websites or reading about web development. But what exactly is a

and why is it important? Well, let’s dive into it!

First of all, the

element is an HTML tag that is used to create a division or a container within a web page. It doesn’t have any specific meaning or purpose on its own, but it acts as a building block for structuring and organizing the content of a webpage.

Think of it as a box that you can put other elements inside, like text, images, videos, or even other

elements. By using

tags, you can group related content together and apply styles or formatting to them. This helps in creating a visually appealing and well-structured webpage.

For example, if you want to create a header section for your webpage, you can wrap the logo, navigation menu, and other header elements inside a

element. This way, you can apply CSS styles to the

to control its positioning, background color, or any other visual properties.

In the above example, the

acts as a container for the header elements. You can see how the logo and navigation menu are placed inside the

. This helps in organizing the content and applying styles to the entire header section.

The

element is also commonly used in combination with CSS frameworks like Bootstrap. These frameworks provide pre-defined classes and styles that you can apply to

elements to quickly create responsive and visually appealing layouts.

So, next time you encounter a

while inspecting a webpage or working on your own website, remember that it’s not just a random tag. It plays a crucial role in structuring and organizing the content on the web.

In conclusion, the

element is a fundamental building block in web development. It acts as a container for grouping and organizing content, allowing developers to apply styles and create well-structured webpages. So, embrace the power of the

and use it wisely in your web development endeavors.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related News