Westfair Business Journals’ Post

04 March 2024 NO RATE CUTS UNTIL THE END OF THE YEAR Raphael Bostic, Atlanta Federal Reserve Bank's President, said the U.S. Federal Reserve is under no urgent pressure to cut interest rates because of a "prospering" economy and job market, despite the risk of inflation remaining above the central bank's 2% target or being sent even higher by "pent-up exuberance," and he added that it will likely be appropriate for the Fed to approve two quarter-point rate cuts by the end of this year. Before rate cuts "I need to see more progress to feel fully confident that inflation is on a sure path to averaging 2% over time," Bostic also said, and "only when I gain that confidence will I feel the time is right to begin lowering the federal funds rate," but "the good news is the labor market and economy are prospering, furnishing the (Federal Open Market) Committee the luxury of making policy without the pressure of urgency." Investors currently expect a rate cut in June, but the Fed at the March 19-20 meeting is expected to maintain the federal funds interest rate at 5.25%-5.5%, where it has been since July. Bostic commented he was concerned about prices for a larger-than-usual share of items increasing at a more than 5% annual rate, while a Dallas Fed 2.6% measure of underlying inflation has been stuck "just outside the neighborhood" of the central bank's target. Bostic also said talking with business executives made him feel confident the economy was strong, as "many executives tell us they are on pause, ready to deploy assets and ramp up hiring when the time is right," but he added being concerned about a new surge of demand, because "if that scenario were to unfold on a large scale, it holds the potential to unleash a burst of new demand...This threat of what I’ll call pent-up exuberance is a new upside risk that I think bears scrutiny in coming months." #economy #markets #financialmarkets #us #usa #fed #federalreserve #atlanta #interestrates #rates #washington #inflation #federalfundsrate #fomc #jobmarket #prices #demand

🚨 Big News from the Fed! 🚨 Federal Reserve policymakers are signaling that interest rate cuts could be on the horizon as they grow more confident that inflation is cooling down. But remember, these cuts will be guided by economic data 🏦, not the ups and downs of the stock market 📉📈. This decision will undoubtedly have a 100% impact on the real estate market 🏡. Lower rates could mean more affordability, but also higher demand, potentially driving real estate values to react swiftly. Whether you're buying, selling, or holding, it's crucial to stay informed and be ready for these market shifts. #FederalReserve #InterestRates #RealEstateMarket #Inflation #HomeValues #RealEstateInvesting #Economy #HomeBuying #HousingMarket #PropertyInvestment

https://lnkd.in/gd3b9E3h With these charts, Wall Street economists make the case for the Federal Reserve cutting interest rates in the near future. #interestrates

Comments from Federal Reserve Chair Jerome Powell indicate that an interest rate cut is imminent, possibly happening as soon as September. At the Fed’s July 30-31 meeting, officials elected to leave the benchmark interest rate unchanged at the 5.25-5.50 percent range. However, further comments hinted at a cut during the September meeting. Read on to find out more information. #InterestRateCut #MortgageRates #FederalReserve #ProfessionalLandTitleCompany

Federal Reserve Chair Jerome Powell signaled Monday that more interest rate cuts are in the pipeline, though their size and speed will depend on the evolution of the economy. Wall Street investors and economists are weighing whether the Fed will follow its larger-than-usual half-point cut made earlier this month with another hefty reduction at either of its upcoming meetings in November or December. At their meeting Sept. 18, Fed officials penciled in two more quarter-point rate cuts at those final 2024 meetings.

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:

“Federal Reserve Chair Jerome Powell said Monday the central bank intends to do what it takes to keep the economy "in solid shape," but that it is no rush and likely to cut interest rates in smaller increments going forward.” "”This is not a committee that wants to cut rates quickly," Powell said during a question and answer session following a speech in Nashville, Tenn., referring to the Fed body that decides on the direction of rates.” “If the economy slows more than expected, however, that committee can cut faster, he noted.” "”We will do what it takes in terms of the speed with which we move."” “Powell’s new comments before the National Association for Business Economics come nearly two weeks after the central bank slashed its benchmark interest rate by 50 basis points at its last policy meeting on Sept. 18, marking the first rate cut in more than four years.” “The consensus among Fed officials outlined at that meeting is for two more 25 basis point rate cuts in 2024.” “Powell on Monday reiterated a point he made immediately following the Sept. 18 meeting, saying the Fed’s decision to slash rates by 50 basis points instead of 25 reflected growing confidence that officials can maintain strength in the job market and the economy while inflation continues to drop.” “While the central bank chair acknowledged the job market has cooled, Powell characterized it as “solid” and noted that layoffs are low, the unemployment rate is within a range of what’s considered full employment, and the labor force participation rate of individuals aged 25 to 54 — so-called prime-age workers — is near a historic high.” “If the jobs report due out Friday shows more weakening, that could cause the central bank to consider cutting rates more deeply at the next meeting in November.” “Atlanta Federal Reserve President Raphael Bostic told Reuters on Monday he would be open to another 50 basis point rate cut at the Fed’s meeting in November if upcoming data show job growth slowing faster than expected.” “Bostic said he previously penciled in just one more 25 basis point rate cut this year.” - Jennifer Schonberger

The U.S. Federal Reserve will wait until September to cut its key interest rate, according to a majority of 100 economists polled by Reuters, with half saying there will be only two cuts this year and only about a third forecasting more. #usa #fed #inflation #interestrates #rates #federalreserve #reuters #ratecut #outlook #economy