Bernard Guerrero’s Post

In a recent meeting, Federal Reserve Chair Jerome Powell emphasized the need for patience in observing inflation trends before considering any adjustment to interest rates, stressing that current policy remains restrictive by many measures. Wilmington Trust’s Chief Economist Luke Tilley recently spoke with Bloomberg where he acknowledged Powell's sentiments, emphasizing that if the Fed feels the need to stay at this level for a longer period, it will. #Fed #Inflation #MarketOutlook

In a recent meeting, Federal Reserve Chair Jerome Powell emphasized the need for patience in observing inflation trends before considering any adjustment to interest rates, stressing that current policy remains restrictive by many measures. Wilmington Trust’s Chief Economist Luke Tilley recently spoke with Bloomberg where he acknowledged Powell's sentiments, emphasizing that if the Fed feels the need to stay at this level for a longer period, it will. #Fed #Inflation #MarketOutlook

📉 Federal Reserve Keeps Interest Rates Steady, Hints at Possible September Rate Cut 📈 The Federal Reserve has decided to keep its key interest rate in the range of 5.25% to 5.5% as it continues to monitor progress toward its 2% inflation target. In a recent press conference, Fed Chair Jerome Powell highlighted that while a rate cut is “on the table” for September, it is contingent on further positive inflation data. Powell emphasized that any potential rate decision will remain apolitical, with the central bank focused solely on economic indicators rather than political outcomes. He also pointed out that while a 50 basis-point cut is unlikely, the Fed is closely watching the labor market and overall economic conditions as it considers its next move. The markets responded positively to Powell’s comments, with major stock indices surging. However, Powell cautioned against assuming a rate cut is certain, as the Fed continues to weigh inflation and employment data equally. Stay tuned as the Fed navigates these complex economic conditions, aiming to balance inflation control with supporting a healthy labor market. Find the full article below. #FederalReserve #interestrates #inflation #financialnews

The Fed did it, and may do it again soon The Federal Reserve started its rate cutting cycle with a 50 bps reduction - what could this mean for portfolios? We have summarized the impact of the FED interest rate cuts and our Fixed Income Views under the following link: #fixedincome

Economic Outlook: Federal Reserve’s Rate Hikes Thomas Barkin of the Federal Reserve has indicated that the effects of the central bank’s rate hikes are still unfolding. He expects that the continued restrictive policy will decelerate economic growth and help bring inflation closer to the 2% goal. Meanwhile, Citadel’s Ken Griffin has posited that the Fed might lower rates in December if not in September, endorsing the central bank’s strategy to maintain higher rates for an extended period. Additionally, we’re anticipating insights from Neel Kashkari later today, on a day with fewer scheduled appearances from Fed officials. This ongoing monetary policy adjustment is crucial for businesses and investors alike. What are your predictions for the economy following these strategic moves by the Fed? Join the conversation and share your perspective. #FederalReserve #EconomicPolicy #InflationControl #InterestRates

What Businesses Need to Know About the Fed's Recent Decision: Federal Reserve Keeps Rates Steady: Rates have remained unchanged for the fourth consecutive meeting, providing stability to financial markets. Risks Are Balancing: Policymakers believe that risks are moving into better balance, suggesting a more favorable economic environment. Unlikely Rate Cut in March: While the Fed remains open to rate cuts, Chairman Jerome Powell dampened hopes for reductions in March, emphasizing the need for greater confidence in inflation trends. Stay Informed: As the Fed's decisions can impact your business, it's crucial to monitor their updates and adapt your strategies accordingly. #FedDecision #BusinessInsights #EconomicStability

No landing 🛬, hard landing “It’s a tough case to make that higher interest rates are having a substantially negative impact on the economy. There are big questions over when exactly monetary policy easing will come, and what the central bank’s position to remain on hold will do to both financial markets and economic performance. There is little precedent for the Fed to cut rates in robust growth periods such as the present, except for the early 1980s, when the central bank stamped out runaway inflation. That leaves expectations for Fed policy tilting toward cutting rates somewhat but not going back to the near-zero rates that prevailed in the years after the financial crisis.” #softlanding, #hardlanding #nolanding #ratecuts #rates

Fed has kept the rates steady with a pause for the fourth time in a row. This was expected but what was not expected was the commentry that followed. The Fed chairman made it abundantly clear that rate cuts won’t be happening in March until something drastic happens to inflation on the lower side. The market had clearly jumped the gun while predicting a rate cut. This spooked the markets with the biggest fall in four months. Now all eyes on the rate cuts in the H2 of the year leading upto the elections in November. #FederalReserve #economy #Markets

The Federal Reserve has begun cutting interest rates starting with a 0.5% decrease on Wednesday to roughly 4.75%. It is unclear how many more cuts, and how much, the Fed will make in the future. Fed Chair Jerome Powell has not indicated how much future cuts will be as he errs toward discretion in the world’s largest economy. One thing is clear; the new “neutral rate,” or the rate that the fed sees as the typical interest rate as things return to normal, could be slightly higher than it has been historically. New sources of demand for investment and government deficits could mean the standard neutral rate of 2.5% will rise. This could potentially change some fundamental economic staples like housing prices and producer and consumer price indexes. The Fed will hold another regular meeting in November where we could see another rate cut. https://lnkd.in/ePzMPTzi

Great article by James Mackintosh for the The Wall Street Journal about the #FED and #interestrates: "U.S. central bank needs to kill its policy of ‘data dependency’— and get investors thinking about the bigger picture". "Step back from the data, and the big question isn’t how to knock a few more tenths of a percentage point off inflation, but how fast and how far to bring down interest rates. That requires predictions about what level of rates the economy can put up with in the long run. Cynics quite rightly point out that past Fed predictions have been terrible. Skeptics, including me, point to the wide disagreement among Fed policymakers about where interest rates will eventually come to rest.  But navigating a soft landing using the rearview mirror isn’t an option when it takes half a year or more for rate changes to have an effect on jobs and inflation. It is time for the Fed to kill its “data dependency,” and try to get investors to think about the longer run". https://lnkd.in/gK68aYyi