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FOMC leaves rates unchanged: Is inflation ticking up again?
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💡Summary: Federal Reserve Chair Jerome Powell announced rates would not change. Fed Govenors on Friday said rate hikes may be neccesary s もっと見る
💡Summary:
Federal Reserve Chair Jerome Powell announced rates would not change.
Fed Govenors on Friday said rate hikes may be neccesary soon.

The predictions were correct: the Fed will not raise rates this month. Federal Reserve officials voted to hold interest rates steady at a 22-year high between 5.25% and 5.5% but signaled they were prepared to raise rates again.
Boston Federal Reserve President Susan Collins said U.S. interest rates could go higher if inflation remains sticky and that rates are likely to stay "higher, and for longer, than previous projections had suggested."

In  a separate statement, Fed Govenor Michelle Bowman said the FOMC will have to raise rates further to hold inflation to 2%.

The Fed paused rates in June as well. Fed Chair Jerome Powell said a slower pace of hikes would give officials more time to see how the economy is responding to them. Recent progress in slowing inflation is "only the beginning of what it will take to build confidence that inflation is moving down sustainably."

The market is hotter than the Fed would like: With oil prices surging, CPI increased by 3.7% YoY in August, marking the second consecutive rebound month and the largest MoM increase in 14 months. The strike organized by the UAW is also in full swing.

🎙️Q:
(1) Will the market celebrate the rate pause?
(2) What impact will a surging stock market have on the Fed's decision?

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