Jerome Powell
The U.S. Federal Reserve raised its benchmark lending rate on Wednesday to the highest level since 2001 to tackle above-target inflation, and signaled the possibility of further increases ahead.
The quarter percentage-point rise lifts the key lending rate to a range between 5.25 percent and 5.5 percent, the U.S. central bank said, adding that it will “continue to assess additional information and its implications for monetary policy.”
The rate-setting Federal Open Market Committee (FOMC) used similar language when it voted to hold rates steady in June, and the latest statement suggests that policymakers are mulling another pause at their next meeting in September.
However, the Fed also said it would assess a range of data points “in determining the extent of additional policy firming,” which indicates that officials see the possibility of more monetary tightening ahead.
Speaking to reporters after the decision was announced, Fed chair Jerome Powell insisted that no decision has been taken to hike at every other meeting, as some analysts have suggested.
“We’re going to be going meeting by meeting,” he said, adding that the Fed would continue to adopt a “data-dependent” approach.
‘Long way to go’
At the previous FOMC meeting in June, the median forecast was for two additional rate hikes this year.
The latest quarter percentage-point rise, which was in line with analysts’ expectations, is the Fed’s 11th since it began an aggressive campaign of monetary tightening last March in response to rising prices.
Although inflation has continued to fall since the decision in June to pause rate hikes, it remains above the Fed’s long-term target of two percent — suggesting more policy action may be needed.
Unemployment has remained close to historic lows, while economic growth for the first quarter was revised up sharply on resilient consumer spending data.
“Inflation has moderated somewhat since the middle of last year,” Powell said on Wednesday.
“Nonetheless, the process of getting inflation back down to two percent has a long way to go,” he added.
Soft landing
The positive economic news has increased the chances of a so-called “soft landing,” in which the Fed succeeds in bringing down inflation by raising interest rates while avoiding a recession and a surge in joblessness.
Jerome Powell REALLY is a…
On Wednesday, Powell reiterated that he felt a soft landing is still possible.
“It has been my view consistently that we do have a shot,” he said, adding: “That’s been my view, that’s still my view.”
Powell told reporters that his staff’s expectations for a recession to start later this year has diminished, as more positive economic data has come in.
“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,” he added.
While investors had more or less priced in a hike on Wednesday, they have been less confident about the chances of another increase at the next Fed meeting in September.
Futures traders currently assign a probability of just over 20 percent that the FOMC will raise rates again in September, according to CME Group.
Written for and published by Breitbart ~ July 26, 2023
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About admin
Please allow me to introduce myself; I am Jeffrey Bennett, President of Kettle Moraine, Ltd., the parent of Sierra Madre Precious Metals.
I have been married for 53 years with two children and four grand-children, a veteran of Viet Nam, student of history (both American and film), and was host for fifteen years of Perspectives on America on the alternative airwaves, covering such subjects as, health and wellness, news, political satire, education and editorial commentary on current events through the teaching of history, and Protecting Your Wealth. In early 2018, I took a several month hiatus to complete some family business but returned to airwaves April 17, 2018).
At the age of ten, I sat in a bank-vault in the Citizens Bank of Mukwanago, Wisconsin with my grandfather going through bags of old American Peace dollars, hand-selecting each coin as dated rolls of 20 coins were carefully put together and rolled. Learning of the history of these beautiful pieces of Americana, I asked my grand-father, "Why are we doing this?" to which he replied, "Because someday they are going to do the same thing with the silver in our money that, that (S.O.B.) Roosevelt did with gold in 1933." It took only six-years for his prediction to come to pass at the hands of a disciple of Roosevelt's... and what will a Federal Reserve 'dollar' purchase today - and what will that old 90% Silver Peace Dollar purchase?
Although at the age of ten, there was little understanding of the meaning of it all, over the next half-century I became well-versed on the subject matter. During this summer of my education, I began to purchase silver coins as a collector and some small, international gold coins two years later - not an easy feat in the shadow of the Roosevelt confiscatory policies of 1933. Although those policies remained in effect until the mid-1970's, it was not until 1991 that I found that one could make a living providing precious metals and collectible, historic numismatic coins to a willing and concerned clientele.
It was also during that year, that I began a relationship with one of the first Trust companies to give the public access to gold and silver as part of an Individual Retirement Account (IRA) - and Kettle Moraine, Ltd., founded in 1995, but have ceased providing service due the the intense change-over of the provider.
In November 2011, after a 15 month broadcast on another network, I returned to the airwaves with my then revamped program, Life, Liberty & All That Jazz, and for over 28 years, I have been proud to serve the family of listeners of my numerous broadcast programs for physically-held precious metals for investors and collectors alike. On March 23, 2020 I launched my brand new - appropriately named program, The Edge of Darkness on the Republic Broadcasting Network, and thus continue to remain available to our long time clients and their families. Ah yes - find out what "inter-generational" wealth provision has done for our clients over the past three decades.
Don't buy the sizzle of that steak until you understand the cost! In other words, don't buy the bull being dispensed by the 'rare coin' pitchmen until you understand the full story. We, at Sierra Madre Precious Metals, will be proud to serve your needs.
