{"id":578625,"date":"2023-06-14T21:00:36","date_gmt":"2023-06-14T18:00:36","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/fed-keeps-interest-rates-unchanged-for-first-time-since-january-2022\/"},"modified":"2023-06-14T21:00:36","modified_gmt":"2023-06-14T18:00:36","slug":"fed-keeps-interest-rates-unchanged-for-first-time-since-january-2022","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/fed-keeps-interest-rates-unchanged-for-first-time-since-january-2022\/","title":{"rendered":"#Fed keeps interest rates unchanged for first time since January 2022"},"content":{"rendered":"<div>\n<p>The Federal Reserve is taking a break from a rapid stretch of rate hikes as it <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>roaches a critical crossroads in its battle with inflation.<\/p>\n<p>The Fed\u2019s rate-setting committee announced Wednesday it would keep its baseline interest rate range unchanged for the first time since January 2022. <\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>The Fed funds rate range will remain at 5 to 5.25 percent, the highest level since 2008.<\/p>\n<p>\u201cHolding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy,\u201d the Federal Open Market Committee (FOMC) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20230614a.htm\">said in a statement<\/a>.<\/p>\n<p>As inflation reached four-decade highs last summer, the Fed rapidly boosted rates to snuff out rapid price growth and cool off a historically strong job market. Higher interest rates tend to slow the economy and sap consumer demand, two of several forces behind inflation.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"4402\" height=\"2935\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/646e530f0578c3.21564206.jpeg?w=900\" alt=\"File - Federal Reserve Chairman Jerome Powell speaks during the Thomas Laubach Research Conference at the William McChesney Martin Jr. Federal Reserve Board Building in Washington, Friday, May 19, 2023. On Wednesday, the Federal Reserve releases minutes from its May meeting when it raised its benchmark lending rate by another 25 basis points. (AP Photo\/Andrew Harnik, File)\" class=\"wp-image-4019094\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/646e530f0578c3.21564206.jpeg 4402w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/646e530f0578c3.21564206.jpeg?resize=300,200 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/646e530f0578c3.21564206.jpeg?resize=768,512 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/646e530f0578c3.21564206.jpeg?resize=1080,720 1080w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/646e530f0578c3.21564206.jpeg?resize=1536,1024 1536w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/646e530f0578c3.21564206.jpeg?resize=2048,1365 2048w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/646e530f0578c3.21564206.jpeg?resize=645,430 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/646e530f0578c3.21564206.jpeg?resize=50,33 50w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/646e530f0578c3.21564206.jpeg?resize=876,584 876w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><em><sub>Federal Reserve Chairman Jerome Powell speaks during the Thomas Laubach Research Conference at the William McChesney Martin Jr. Federal Reserve Board Building in Washington, Friday, May 19, 2023. (AP Photo\/Andrew Harnik, File)<\/sub><\/em><\/figcaption><\/figure>\n<p>With inflation plunging towards the Fed\u2019s target and the economy showing signs of slowing, the central bank is now taking a step back.\u00a0<\/p>\n<p>The annual inflation rate is down 4 percent from 9.1 percent in June 2022, as measured by the Labor Department\u2019s consumer price index (CPI). <\/p>\n<p><strong>Is the Fed\u2019s approach working? Five takeaways from the steep May inflation decline<\/strong><\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>Economic growth has also cooled off and several interest rate-sensitive industries, such as real estate and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>, have taken serious hits from higher borrowing costs.<\/p>\n<p>\u201cThe inflation data supports the notion of at least a pause in the Federal Reserve\u2019s rate hike campaign as it tries to push inflation back toward its long-term target of 2 percent,\u201d wrote Joe Brusuelas, chief economist at audit and tax firm RSM, in a Tuesday analysis.<\/p>\n<p>These early signs have given Fed officials comfort to hold off on another rate hike, especially since higher borrowing costs can take months \u2014\u00a0 if not years \u2014 to make their full impact.<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>Even so, the job market has largely shaken off rate hikes meant to weaken it and inflation is still roughly twice the Fed\u2019s annual target. The resilience of the labor market and the stubbornness of inflation in some sectors have left the central bank on guard and unlikely to rest on its laurels.<\/p>\n<p>\u201cWhile we note that getting inflation from 9.1 perent to 4 percent will be easier than driving it down from 4 percent to 3 perent and then 3 percent\u00a0 to 2 percent, it is important to note that the direction and pipeline pressure inside the service sector are all moving in the right direction. And that is something to celebrate,\u201d Brusuelas wrote.<\/p>\n<p><strong>On the horizon: Goldman Sachs sees lower chance of recession<\/strong><\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>While the Fed may be moving toward its long-sought victory against inflation, the next few months pose a gantlet for central bankers.<\/p>\n<p>Fed officials will need to decide whether they have already done enough to keep the economy on track for lower inflation and risk prices bouncing back up, or add more pressure and potentially drive the U.S. into recession.<\/p>\n<p>And the Fed doesn\u2019t seem likely to pause for long.<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>Members of the FOMC expect to hike interest rates by another 0.5 percentage points before the end of the year, according to new <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/files\/fomcprojtabl20230614.pdf\">economic projections<\/a> released Wednesday. Fed officials only expected to hike one more time in March.<\/p>\n<p>FOMC members also expect the economy to grow at a faster rate, the jobless rate to stay lower, and inflation to remain higher than they expected they would in March.<\/p>\n<p>Federal Reserve Chairman Jerome Powell is set to face questions from reporters during a Wednesday press conference.<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p><em>Updated at 2:12 p.m.<\/em><\/p>\n<\/div>\n<p>Copyright 2023 Nexstar <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\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:\/\/thehill.com\/business\/4049327-fed-keeps-interest-rates-unchanged-for-first-time-since-january-2022\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Reserve is taking a break from a rapid stretch of rate hikes as it approaches a critical crossroads in its battle with inflation. The Fed\u2019s rate-setting committee announced Wednesday it would keep its baseline interest rate range unchanged for the first time since January 2022. The Fed funds rate range will remain at&#8230;<\/p>\n","protected":false},"author":1,"featured_media":578626,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/64664276dc5816.29606955-e1686692969621.jpeg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[117,86421,136050,5069,70550,133498,70551,124783,78738,40445,91261,5071],"class_list":["post-578625","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-business","tag-criminal-justice","tag-diversity-inclusion","tag-economy","tag-federal-reserve","tag-in-the-know","tag-inflation","tag-international","tag-jerome-powell","tag-media","tag-recession","tag-unemployment"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/578625","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=578625"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/578625\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/578626"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=578625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=578625"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=578625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}