{"id":357216,"date":"2021-10-22T20:38:59","date_gmt":"2021-10-22T17:38:59","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/its-not-time-to-hike-rates\/"},"modified":"2021-10-22T20:38:59","modified_gmt":"2021-10-22T17:38:59","slug":"its-not-time-to-hike-rates","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/its-not-time-to-hike-rates\/","title":{"rendered":"#It&#8217;s not time to hike rates"},"content":{"rendered":"<p>&#8220;<strong>#It&#8217;s not time to hike rates<\/strong>&#8221;<\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>Federal Reserve Chairman Jerome\u00a0Powell\u00a0said on Friday the US central bank should begin reducing its asset purchases soon, but should not yet raise interest rates because employment is still too low and high inflation will likely abate next year as pressures from the COVID-19 pandemic fade.<\/p>\n<p>\u201cI do think it\u2019s time to taper; I don\u2019t think it\u2019s time to raise rates,\u201d\u00a0Powell\u00a0said in a virtual <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>earance before a conference. \u201cWe think we can be patient and allow the labor market to heal.\u201d<\/p>\n<p>That outlook,\u00a0Powell\u00a0emphasized, is only the most likely case, adding that if inflation \u2014 already higher and lasting longer than earlier expected \u2014 moves persistently upward, the\u00a0Fed\u00a0would act.<\/p>\n<p>\u201cOur policy is well positioned to manage a range of plausible outcomes,\u201d he said.<\/p>\n<p>The\u00a0Fed\u00a0is on the cusp of beginning to withdraw some of its crisis-era support when it begins to taper its $120 billion in monthly purchases of Treasury bonds and mortgage-backed securities, a move it has signaled it could take next month.<\/p>\n<p>The central bank, however, is facing a delicate balancing act in its dual mandate to seek full employment and stable prices.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/fed-powell-says-no-rate-hike2.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"A &quot;Now Hiring&quot; sign in the window of a store\" class=\"wp-image-19891169\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/fed-powell-says-no-rate-hike2.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/fed-powell-says-no-rate-hike2.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/fed-powell-says-no-rate-hike2.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Fed Chairman Jerome Powell says the central bank needs to give the labor market time \u201cto heal\u201d before raising interest rates.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n<p>Consumer prices have been rising at more than twice the\u00a0Fed\u2019s 2% target, but employment is still well below the pre-pandemic level.<\/p>\n<p>And,\u00a0Powell\u00a0noted, \u201csupply constraints and elevated inflation are likely to last longer than previously expected and well into next year, and the same is true for pressure on wages.\u201d<\/p>\n<p>The most likely case is for inflation pressures to abate and job growth to resume its pace from this past summer, he said, but \u201cif we were to see a risk of inflation moving persistently higher, we would certainly use our tools.\u201d<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/fed-powell-says-no-rate-hike3.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"A shopper wearing a mask looks at prepared meals at a grocery store\" class=\"wp-image-19891208\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/fed-powell-says-no-rate-hike3.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/fed-powell-says-no-rate-hike3.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/fed-powell-says-no-rate-hike3.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Consumer prices have been rising at more than twice the Fed\u2019s 2 percent target, but employment is still well below the pre-pandemic level.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n<p>For now, the\u00a0Fed\u00a0will watch and wait, he said.<\/p>\n<p>\u201cWhile the time is near for tapering our asset purchases, it would be premature to tighten policies using rates now, with the effect and intent of slowing job growth, when there is good reason to expect that we\u2019ll return to robust jobs growth and for the supply constraints to diminish, both of which we would have the effect of increasing potential output of the economy,\u201d he said.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2021\/10\/22\/federal-chair-jerome-powell-its-not-time-to-hike-rates\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#It&#8217;s not time to hike rates&#8221; Federal Reserve Chairman Jerome\u00a0Powell\u00a0said on Friday the US central bank should begin reducing its asset purchases soon, but should not yet raise interest rates because employment is still too low and high inflation will likely abate next year as pressures from the COVID-19 pandemic fade. \u201cI do think it\u2019s&#8230;<\/p>\n","protected":false},"author":1,"featured_media":357217,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/fed-powell-says-no-rate-hike.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[117868,5069,70550,70552,78738],"class_list":["post-357216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-10-22-21","tag-economy","tag-federal-reserve","tag-interest-rates","tag-jerome-powell"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/357216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=357216"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/357216\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/357217"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=357216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=357216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=357216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}