July 20, 2024

Everything we heard in 2023

2023 has been a wild ride with regard to the Federal Reserve. With interest rates currently in the range of 5.25%-5.50%, Yahoo Finance takes a look at all of Federal Reserve Chairman Jerome Powell’s speeches from the year. Here are the top takeaways regarding interest rate decisions.

February 1, 2023 (00:00:03)

The Federal Reserve decided to raise interest rates at its first meeting of 2023 by 25 basis points. “We continue to anticipate that ongoing increases will be appropriate,” Powell said. “While recent developments are encouraging, we will need substantially more evidence to be confident that inflation is on a sustained downward path.”

March 22, 2023 (00:00:33)

In March, the Federal Reserve raised interest rates 0.25% to a new range of 4.75%-5%, its highest since October 2007. “Inflation remains too high, and the labor market continues to be very tight,” Powell explained. “Reducing inflation is likely to require a period of below trend growth and some softening in labor market conditions.”

May 3. 2023 (00:01:05)

At the beginning of May, Fed officials announced another 25 basis-point rate hike, pushing the fed funds rate to a new range of 5%-5.25%, its highest since September 2007. “Looking ahead we’ll take a data dependent approach when determining the extent to which additional policy affirming may be appropriate. affirming may be appropriate,” Powell said. “We will make that determination meeting by meeting based on the totality of incoming data and their implications for the outlook for economic activity and inflation.”

June 14, 2023 (00:01:36)

The Federal Reserve kept interest rates unchanged at its June meeting, holding interest rates steady in the current range of 5%-5.25%. “Looking ahead, nearly all committee participants view it as likely that some further rate increases will be appropriate this year to bring inflation down to 2% over time,” Powell explained.

July 26, 2023 (00:02:02)

The Federal Reserve raised interest rates by 25 basis points at its July meeting, bringing the benchmark fed funds rate to a 22-year high of 5.25-5.50%. “We’ve covered a lot of ground, and the full effects of our tightening have yet to be felt,” Powell said. “Looking ahead we will continue to take a data dependent approach in determining the extent of additional policy affirming that may be appropriate.”

September 20, 2023 (00:02:31)

In September, the Federal Open Market Committee kept its fed funds target rate unchanged at a range of 5.25%-5.50%. “Looking ahead, we were in a position to proceed carefully in determining the extent of additional policy affirming that may be appropriate,” Powell explained. “Our decisions will be based on our ongoing assessments of the incoming data and the evolving outlook and risks.”

November 1, 2023 (00:02:51)

The Federal Reserve decided to keep interest rates unchanged in a range of 5.25%-5.50% at its November meeting. “Inflation has moderated since the middle of last year, and readings over the summer were quite favorable,” Powell said. “But a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal.”

December 13, 2023 (00:03:16)

In December, the Federal Reserve maintained its benchmark interest rate in a range of 5.25%-5.50%, but signaled it will likely cut interest rates by a total of 75 basis points, or 0.75%, in the year ahead. “While we believe that our policy rate is likely at or near its peak for this tightening cycle, the economy has surprised forecasters in many ways since the pandemic,” Powell explained. “And ongoing progress toward our 2% inflation objective is not assured. The lower inflation readings of the last several months are welcome, but we will need to see further evidence that inflation is moving down sustainably toward our goal.”

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