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?????? ???????? ???????????????? ?????????? ???? ?????????????? ??????????. ?????? ??????'?? 25-??????????-?????????? ?????? ?????????????? ?? ????????????-????????-?????????? 50-??????????-?????????? ?????? ???? ?????? ?????????? ??????????????. On November 7, 2024, the Federal Reserve, announced its second consecutive interest rate cut, lowering the benchmark rate by 25 basis points amid economic data showing signs that inflation and the labor market are cooling. With the 25-basis-point cut, the benchmark federal funds rate will sit at a range of 4.5% to 4.75%. The Fed's move follows a larger-than-normal cut of 50 basis points at its September meeting, which was the first rate cut since March 2020 and brought rates down from a range of 5.25% to 5.5% the highest level since 2001. The Federal Open Market Committee (FOMC), the Fed's policymaking arm, noted that "labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee's 2 percent objective but remains elevated." Policymakers noted in the announcement that they're "attentive to the risks to both sides of its dual mandate" which is to promote maximum employment and stable prices. All FOMC members voted in favor of the rate cut. #FederalReserve #InterestRates #Economy #MonetaryPolicy #Inflation #LaborMarket #EconomicOutlook #FinancialMarkets #EconomicPolicy

The Federal Reserve signaled that interest rate cuts may not materialize in 2024 as initially anticipated due to persistent inflation and a resilient economy. The latest data from the Fed's H.15 release shows the effective federal funds rate holding steady at 5.33% since early May. However, some officials have expressed concerns that these high rates are not effectively curbing consumer spending and inflation. With inflation exceeding the 2% target and the economy exhibiting unexpected strength, the Fed may need to keep rates elevated for longer to gain "greater confidence" that inflation is controlled - carefully balancing the need to cool demand against the risk of tipping the economy into a recession. As businesses and households adjust to a higher rate environment, the path back to pre-pandemic monetary policy remains challenging but necessary for long-term economic health. Read more here: ?? https://lnkd.in/eyZB6j2z ?? https://lnkd.in/eAdZiMFw

Federal Reserve Maintains Interest Rates Amid Growing Economic Resilience The Federal Reserve has decided to keep the benchmark interest rate unchanged at its recent policy meeting, despite easing inflationary pressures, highlighting policymakers' cautious approach. Chairman Powell emphasized the progress in controlling inflation while underscoring the significance of the labor market. The US economy showed resilience in the second quarter, with a 2.8% GDP growth, indicating strength despite a slowdown in residential investment, with robust personal consumption and non-residential investment. Inflation data revealed a 3% year-on-year CPI growth, coupled with a rise in the unemployment rate to 4.1%, indicating an attempt to mitigate inflation by increasing unemployment. The Federal Reserve is expected to adjust its monetary policy within the year, potentially lowering rates as early as September, with an anticipated cut of around 50 basis points. # Thank you Shan Liang for your submission!

Fed is expected to leave interest rates unchanged As the Federal Reserve concludes its two-day policy meeting on Wednesday, it is widely anticipated that interest rates will remain steady. However, signals point towards a potential decrease in borrowing costs, possibly by September. Market derivatives linked to the Federal Reserve's policy rate have led investors to largely anticipate a rate cut at the upcoming September 17-18 meeting. The debate centers on whether the Fed will opt for a modest quarter-percentage-point reduction or a bolder half-percentage-point cut, as inferred from CME Group's FedWatch tool.https://https://lnkd.in/gHiuAmqP For the last twelve months, the Federal Reserve has maintained its policy rate within the 5.25%-5.50% bracket. Should a 50-basis-point reduction be considered, it would likely necessitate clear indicators of an accelerated economic slowdown, endangering the current low unemployment rate of 4.1%. In the face of persistent inflation over the past two years, the Fed has implemented the most rapid rate increases seen since the 1980s. Despite these measures, the economy has outperformed expectations, exhibiting faster growth, a trend supported by recent data. The employment cost index, encompassing wages and benefits, saw a 0.9% rise in Q2. https://www.bls.gov/eci/ It's slightly below the 1% forecast by economists in a Reuters survey. This outcome may reinforce the Federal Reserve officials' view that the labor market and wage growth are unlikely to fuel further inflation. Nancy Vanden Houten, Oxford Economics' lead U.S. economist, observed that while the labor market has shown signs of cooling in recent months, it remains robust, according to Reuters. https://lnkd.in/dEYJ4yjG She said that "The labor market has cooled over the last several months but isn't weak." "That's a scenario the Federal Reserve wants to guard against, and we expect the Fed to begin cutting rates in September." Picture credit: Reuters #inflation #ratecuts #interestrates #fed #usbusiness

Recent economic indicators suggest that the Federal Reserve will maintain interest rates in response to inflationary pressures, impacting both residential and commercial sales. Chair Jerome Powell has emphasized the importance of continued economic improvement before considering any adjustments to rates. Vice Chair Philip Jefferson has pointed out the strong GDP growth and better-than-expected job gains. Additionally, Atlanta Fed President Raphael Bostic predicts a slower decrease in inflation, hinting at a potential policy change by the end of the year. Read on:

Fed is expected to leave interest rates unchanged As the Federal Reserve concludes its two-day policy meeting on Wednesday, it is widely anticipated that interest rates will remain steady. However, signals point towards a potential decrease in borrowing costs, possibly by September. Market derivatives linked to the Federal Reserve's policy rate have led investors to largely anticipate a rate cut at the upcoming September 17-18 meeting. The debate centers on whether the Fed will opt for a modest quarter-percentage-point reduction or a bolder half-percentage-point cut, as inferred from CME Group's FedWatch tool.https://https://lnkd.in/dx3MkpfY For the last twelve months, the Federal Reserve has maintained its policy rate within the 5.25%-5.50% bracket. Should a 50-basis-point reduction be considered, it would likely necessitate clear indicators of an accelerated economic slowdown, endangering the current low unemployment rate of 4.1%. In the face of persistent inflation over the past two years, the Fed has implemented the most rapid rate increases seen since the 1980s. Despite these measures, the economy has outperformed expectations, exhibiting faster growth, a trend supported by recent data. The employment cost index, encompassing wages and benefits, saw a 0.9% rise in Q2. https://www.bls.gov/eci/ It's slightly below the 1% forecast by economists in a Reuters survey. This outcome may reinforce the Federal Reserve officials' view that the labor market and wage growth are unlikely to fuel further inflation. Nancy Vanden Houten, Oxford Economics' lead U.S. economist, observed that while the labor market has shown signs of cooling in recent months, it remains robust, according to Reuters. https://lnkd.in/dGPGc-J5 She said that "The labor market has cooled over the last several months but isn't weak." "That's a scenario the Federal Reserve wants to guard against, and we expect the Fed to begin cutting rates in September." Picture credit: Reuters #inflation #ratecuts #interestrates #fed #usbusiness

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This Wednesday, 9/18, the Federal Reserve cut interest rates for the first time since 2020. Here are some key points from the latest FOMC Meeting: The Federal Reserve lowered the target for the federal funds rate by 50 basis points to a range of 4.75% to 5.0%. Fed Chair Powell called this move a "recalibration" - alluding to a shift in policy from a more restrictive level as opposed to combating an economic crisis. In other words, he is saying this rate cut is a normalization in monetary policy. A drop in inflation gave the committee confidence that monetary policy could be eased. This move also supports its dual mandate as job growth has slowed. Powell also mentioned that the "balance of risks" has shifted - indicating that supporting the job market has taken more precedence over fighting inflation. The unemployment rate is at 4.2%, which is up from 3.7% at the start of the year. The Fed has projected unemployment to increase slightly to 4.4% in Q4 of this year.

So When Will the Fed Cut Interest Rates? While Fed officials have acknowledged progress in the fight against inflation, they have said they need to see more data before beginning to cut interest rates. Need help managing your portfolios in this uncertain time? Give us a call at 505-831-6342