Friday, May 30, 2025

Latest

Jerome Powell Warns of Ongoing Rate Hikes

Although US inflation is showing signs of easing— albeit slowly, the Fed appears adamant on continuing its aggressive rate-hiking cycle.

Fed minutes released yesterday from January’s FOMC meeting show that policy makers are still worried about inflation sitting well above the central bank’s 2% target range, while the labour market, “remains very tight, contributing to continuing upward pressures on wages and prices.” As such, committee members noted that “substantially more evidence of progress across a broader range of prices would be required to be confident that inflation was on a sustained downward path,” adding that “ongoing” rate hikes are imperative.

In February, policy makers approved a 25 basis-point rate increase, bringing borrowing costs to a target range of 4.5% to 4.75%. However, Fed Chair Jerome Powell failed to give an indication of the size of potential upcoming rate increases, since policy makers still remain divided on the issue. In a recent interview with CNBC, St. Louis Fed President James Bullard suggested that an even more hawkish tightening cycle would give the central bank better control over bringing inflation down quicker.

“It has become popular to say, ‘Let’s slow down and feel our way to where we need to be.’ We still haven’t gotten to the point where the committee put the so-called terminal rate… You’ll know when you’re there when the next move could be up or down. Our risk now is inflation doesn’t come down and reaccelerates, and then what do you do? Let’s be sharp now, let’s get inflation under control in 2023,” he explained.

Data from the BLS showed that January CPI rose 0.5% from the month prior to 6.4%. Markets are anticipating another 25 basis-point rate increase come March, followed by two more rate hikes throughout the year to bring the target rate to a range between 5.25% and 5.5%.


Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Fed Losing Control of Monetary Policy as Biden Admin Warns of ‘Extraordinarily Elevated’ Inflation Print

It’s official: the Fed has lost complete control over inflation, prompting the White House to...

Monday, April 11, 2022, 05:32:22 PM

Is It Becoming Socially Acceptable to Steal From Price-Gouging Grocery Stores?

A recent increase in social media users announcing that they have been shoplifting from Canadian...

Tuesday, January 17, 2023, 07:29:00 AM

Turkish Lira Plummets After Central Bank Cuts Rates AGAIN Despite Surging Hyperinflation

In the banana republic that is Turkey, when Erdogan wants cheap money, he gets cheap...

Friday, August 19, 2022, 09:59:00 AM

Canada’s Inflation Levels Accelerate by Most Since Beginning of Pandemic

It appears that Canadians are beginning to experience some of the price pressures associated with...

Thursday, December 17, 2020, 10:01:00 AM

Don’t Start The Car! Ikea Raised Prices up to 80% Due to Surging Material, Transport Costs

The days of peeling out of the Ikea parking lot loaded to the roof with...

Tuesday, October 18, 2022, 03:05:12 PM