Name: Fed hike puts interest rates at 22-year high
Uploaded: 2023-07-27
Duration: 1 min 10 s
Description: On the bright side, Federal Reserve Chair Jerome Powell says a recession now looks unlikely.

On the bright side, Federal Reserve Chair Jerome Powell says a recession now looks unlikely.

Fed hike puts interest rates at 22-year high

Politics

At today's meeting, the committee raised the target range for the federal funds rate by a quarter percentage point, bringing the target range to five and a quarter to 5.5%. We are also continuing the process of significantly reducing our securities holdings. Inflation remains well above our longer run goal of 2% over the 12 months ending in May total PCE prices rose 3.8% excluding the volatile food and energy categories. Core PCE prices rose 4.6%. Inflation has moderated somewhat since the middle of last year. Nonetheless, the process of getting inflation back down to 2% has a long way to go. So the staff now has a noticeable slowdown in growth starting later this year in the forecast. But given the resilience of the economy recently, they are no longer forecasting a recession. Um It's I just want to note that it's that our staff produces its own forecast, which is independent of the forecast that we as FO MC participants produce, having an independent staff forecast as well as the individual participant forecast is really a strength of our of our process