How the Federal Open Market Committee incorporates the 2.8% year over year increase in prices is anyone's guess. In the near past, the Committee's voting members have commented that a two percent inflation rate need not exist at the moment in time when a decision to cut the interbank overnight rate is made. The decision can be made to trim the engine and go to ten-degree flaps as the economy approaches the two-percent target runway. FOMC members have been cautioning the markets that the markets should hold their horses as the FOMC waits for best data. #prices #food #energy #utilities #banks
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Tax-exempt yields were little changed last week and this week the new issue calendar is expected to be light due to the FOMC meeting. This month's average daily trade count is up 9% compared to January 2023, but down significantly from the record trade count we saw in the 4th quarter. See the Market Statistics section on EMMA: https://lnkd.in/eZEpAtsz
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Although recent data show that economic activity remains well-supported, we look for the FOMC to cut rates by 25 bps at the conclusion of its next policy meeting on November 7 because the stance of policy remains restrictive. In our view, a 25 bps rate cut allows the Committee to move further toward "neutral" without rekindling inflation. We do not look for an end to quantitative tightening at this meeting, but we expect FOMC members will begin discussions on the end-date for QT. https://lnkd.in/eURFekVB
Wells Fargo - November Flashlight for the FOMC Blackout Period
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While markets expected the March FOMC meeting to be a blockbuster in terms of changes to monetary policy or increased forward guidance regarding next steps, the lack of either suggests the committee is in no hurry to appease anyone as it seeks the right combination of conditions before shifting towards a more accommodative policy posture. Read my full statement on the March #FOMC decision and its latest efforts to reduce #inflation.
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Since 1995, I've helped real estate investors large and small WIN! As a retired builder, an investor, landlord and flipper, I've negotiated it all. Licensed Mortgage Broker @ Waypoint | Deal Closure Expert
Keep an eye on the markets this week and next! The Treasury is set to auction off more bonds, which could create some buzz. Additionally, the December Consumer Price Index (CPI) will be released, providing insight into consumer inflation. If the report meets or falls below expectations, it could confirm that the rate hike in July was indeed the last. Stay tuned! #finance #marketwatch #economy
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My newest piece for the American Institute for Economic Research - AIER: "The Federal Open Market Committee, which decides the Fed’s interest rate policy, next meets June 11-12. They’ll likely stay the course. It’s too early to cut rates, and there appears to be little need to raise them. Unless the next release of the Personal Consumption Expenditures Price Index (PCEPI) at the end of May radically diverges from the CPI, expect Jerome Powell and his colleagues to maintain current policy." Link: https://lnkd.in/ee5ucw8T
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In this week's market update, our Wealth Management team reviews the results of the September FOMC meeting and analyzes the effects of the rate cut. Read more and download the full Weekly Market Update: https://trst.in/jmVc16
Weekly Market Update: September 23, 2024
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The Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 22 percent in its meeting today. The MPC noted that while inflation is coming down as expected, it is still high. The MPC also factored in recent rising trend in global commodity prices amidst ongoing geopolitical events, and the potential implications of upcoming budgetary measures for the inflation outlook. On balance, the Committee stressed on continuation of the current monetary policy stance, with significant positive real interest rates, to bring inflation down to the target range of 5 – 7 percent by September 2025. #sbpmonetarypolicy
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The MPC decision to keep rates unchanged aligned with our outlook and expectations. There is no immediate risk to growth, which is positive for the equity markets. While geopolitical tensions could affect inflation through commodity price fluctuations, overall liquidity remains stable, the shift from an accommodative stance to neutral opens up the chances of rate cut in the next MPC meeting in December. This outlook is favourable for equity markets, the next policy meeting will be crucial, with a strong possibility of rate cuts that may bring big changes.
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The Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 22 percent in its meeting today. The MPC noted that while inflation is coming down as expected, it is still high. The MPC also factored in recent rising trend in global commodity prices amidst ongoing geopolitical events, and the potential implications of upcoming budgetary measures for the inflation outlook. On balance, the Committee stressed on continuation of the current monetary policy stance, with significant positive real interest rates, to bring inflation down to the target range of 5 – 7 percent by September 2025. https://lnkd.in/eHWhryb3 #SBPMonetaryPolicy
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🔍💸 Unraveling Inflation: The Consumer Price Index (CPI) serves as a vital gauge of inflation, impacting everything from purchasing power to investment strategies. Interested in talking further? Drop a comment below! 💬📈 #CPI #InflationInsights #FinancialLiteracy
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