New Market Perspective
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

New Market Perspective

Business

Fed Chair Jerome Powell says inflation has been higher than thought and expects rates to hold steady

by admin May 15, 2024
May 15, 2024
Fed Chair Jerome Powell says inflation has been higher than thought and expects rates to hold steady

Federal Reserve Chair Jerome Powell reiterated Tuesday that inflation is falling more slowly than expected and will keep the central bank on hold for an extended period.

Speaking to the annual general meeting of the Foreign Bankers’ Association in Amsterdam, the central bank leader noted that the rapid disinflation that happened in 2023 has slowed considerably this year and caused a rethink of where policy is headed.

“We did not expect this to be a smooth road. But these [inflation readings] were higher than I think anybody expected,” Powell said. “What that has told us is that we’ll need to be patient and let restrictive policy do its work.”

While he expects inflation to come down through the year, he noted that hasn’t happened so far.

“I do think it’s really a question of keeping policy at the current rate for longer than had been thought,” he said.

However, Powell also repeated that he does not expect the Fed to be raising rates.

The Fed has been holding its key overnight borrowing rate in a targeted range of 5.25%-5.5%. Though the rate has been there since July, it is the highest level in some 23 years.

“I don’t think that it’s likely, based on the data that we have, that the next move that we make would be a rate hike,” he said. “I think it’s more likely that we’ll be at a place where we hold the policy rate where it is.”

Markets vacillated as Powell spoke around 10 a.m. ET and major averages were near breakeven approaching noon ET. Treasury yields edged lower, and futures traders slightly raised the market-implied probability of the Fed’s first rate cut coming in September.

Powell’s comments mirrored sentiments he expressed during his May 1 news conference after the most recent Federal Open Market Committee meeting.

The committee unanimously voted to hold the line on rates while also expressing that it had seen a “lack of further progress” on getting inflation back to the Fed’s 2% target, despite a series of 11 interest rate increases.

Tuesday brought a fresh round of discouraging inflation data, when the Labor Department’s producer price index, a proxy for wholesale costs, rose a higher-than-expected 0.5% in April on the back of a surge in services prices.

Though the index on its surface indicated further price pressures, Powell called the report “mixed” as some of the components showed easing movement.

“Is inflation going to be more persistent going forward? … I don’t think we know that yet. I think we need more than a quarter’s worth of data to really make a judgement on that,” he said.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Federal student loans this fall will have the highest interest rate in more than a decade
next post
Red Lobster closing at least 99 locations as its future comes into question

Related Posts

Going camping off the grid is getting harder....

June 17, 2024

What the National Association of Realtors’ settlement means...

March 17, 2024

Rules for repaying Social Security benefits are about...

March 11, 2025

Pixar is laying off 14% of its workforce...

May 22, 2024

JPMorgan Chase posts record profit as the bank’s...

January 17, 2025

Student loan repayment issues frustrate borrowers, prompting federal...

January 6, 2024

How America’s chief consumer-protection agency came into the...

February 13, 2025

Why companies are canceling summer Fridays

June 17, 2024

Former Ozy Media head sentenced to nearly 10...

December 17, 2024

White House aims to make it easier for...

August 13, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • UK police make second arrest in connection with fires linked to PM Starmer

      May 18, 2025
    • Deported mom says toddler’s return to Venezuela after separation by US authorities was a ‘miracle’

      May 18, 2025
    • Duterte scores landslide win in local elections. But can he be mayor from The Hague?

      May 18, 2025
    • Austria’s JJ wins Eurovision 2025 with ‘Wasted Love’

      May 18, 2025
    • How Pope Leo dealt with years of abuse allegations in a powerful Catholic society in Peru

      May 18, 2025
    • The popemobile, a signet ring and a ‘betrothal:’ How Pope Leo’s inauguration will unfold

      May 18, 2025

    Popular

    • 1

      10 Top Oil-producing Countries (Updated 2024)

      October 19, 2024
    • 2

      Powered by rain, this seed carrier could help reforest the most remote areas

      December 19, 2023
    • 3

      A troubling theory about traders profiting from Hamas’ attack on Israel drew much attention. Why it may not be so simple.

      December 13, 2023
    • 4

      Americans are starting to feel better about the economy and inflation

      December 13, 2023
    • 5

      Rare Earths Stocks: 8 Biggest Companies in 2024

      January 12, 2024
    • 6

      Top 10 Uranium-producing Countries (Updated 2024)

      April 18, 2024
    • 7

      Investing in Graphene Companies

      May 9, 2024

    Categories

    • Business (1,322)
    • Investing (3,124)
    • Politics (4,105)
    • World (4,057)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: newmarketperspective.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 newmarketperspective.com | All Rights Reserved