The decision came as inflation receded faster than anticipated, prompting discussions about potential cuts in borrowing costs. The benchmark overnight borrowing rate was maintained within a targeted range of 5.25%–5.5% as the inflation rate eased and the economy demonstrated resilience.
Powell’s remarks during a press conference indicated a departure from the earlier trajectory of raising Federal Reserve rates, with considerations for a possible future reduction. He emphasized that rate hikes were no longer the base case, signaling a shift in the Federal Reserve‘s stance.
Following a series of rate hikes totaling 525 basis points from March 2022 to July 2023, aimed at combating record inflation, Powell acknowledged the challenge of achieving a soft landing. Many analysts had expressed skepticism about the possibility of a soft landing, where a central bank raises Federal Reserve rates sufficiently to curb inflation without causing a recession.
Powell highlighted the Fed’s statutory responsibility for maintaining stable prices and maximum employment, acknowledging the inherent conflict between these goals. Despite the challenges, officials expressed optimism about achieving a soft landing, with inflation returning to the Fed‘s 2% target in a slowing but stable economy characterized by low unemployment.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
ETHPrague 2024 is breaking new ground by shifting its attention away from get-rich-quick schemes and…
Crypto.Games, an online cryptocurrency casino established in 2020 and renowned for its innovative approach to…
Utah's crypto enthusiasts are gearing up for the highly anticipated Cryptopia Conference 2024, set to…
Grayscale spot Ethereum ETF is focusing resources; the company drops Ether futures ETF application amid…
Former President Donald Trump announces support for cryptocurrency, stating he will accept crypto donations for…
Consensus 2024 stands as the unrivaled pinnacle of the cryptocurrency, blockchain, and Web3 communities, solidifying…
This website uses cookies.