11/23/2023 0 Comments Clean email serviceDon't Get Distracted - This is a subreddit for productivity.We wish to keep this subreddit a civil environment for all. Catfishing is the luring of somebody into an online friendship through a fake online persona. It may land you in legal trouble, and the mods cannot help you if it falls to that. Do not harass or annoy others in any way. Do not be mean, insulting or disrespectful to any other user on this subreddit. Stay positive - Be polite and courteous to each other.All rights reserved.A subreddit devoted to tips and tricks for being more productive. “Globally, monetary policy is on a tightening track, and that puts some upward pressure on rates in the U.S.,” said William English, a former senior Fed official who is now a professor at Yale School of Management.Ĭopyright 2023 The Associated Press. Treasurys, which are needed to attract investors. Rising rates overseas have led to higher yields on U.S. The Bank of Japan, which meets Friday, is under less pressure to boost rates, although it has taken steps to allow Japanese long-term rates to tick up. The Bank of England is also expected to increase its rate when it meets Thursday. The European Central Bank raised its benchmark rate last week for the 10th time to 4%, the highest level on record since the euro was established in 1999, though it signaled that it could be its last hike. Inflation worsened after Russia’s invasion of Ukraine in February 2022 sent oil and other commodity prices spiking. This week’s Fed meeting comes as central banks around the world are mostly raising rates to fight inflation, which spiked after the pandemic hampered global supply chains, causing shortages and higher prices. “Market participants are just a little too optimistic about inflation.” “They’re going to want to hedge that risk,” said Jose Torres, chief economist at Interactive Brokers. And some economists say the policymakers may forecast just one or two rate cuts in 2024, fewer than the three they envisioned in June, in part to dispel any overly optimistic expectations on Wall Street for deeper rate reductions. Last week’s inflation readings might lead the Fed to forecast one additional rate hike this year. In June, they projected two more hikes, and in July they imposed one of them, raising their benchmark rate to roughly 5.4%, its highest level in 22 years. The updated projections the Fed will issue Wednesday will include estimates of where its policymakers think their key rate is headed. On a monthly basis, consumer prices jumped 0.6%, the most in more than a year and 3.7% from a year earlier, the second straight such increase. Last week’s inflation data underscored, though, that even a soft landing may not be a smooth one. “We will proceed carefully,” he said, “as we decide whether to tighten further or instead to hold the policy rate constant and await further data.” Powell’s own speech late last month at the Fed’s annual conference of central bankers in Jackson Hole, Wyoming, stressed his belief that the Fed can act in a measured fashion. There is nothing saying that we need to do anything imminent anytime soon.” “It’s going to allow us to proceed carefully. “That was a hell of a good week of data we got last week,” Christopher Waller, a member of the Fed’s Board of Governors who is close to Powell, said in an interview on CNBC this month. This has brought labor demand and supply into better balance and eased the pressure on employers to raise pay to attract and keep workers, which can lead them to raise prices to offset higher labor costs. And the number of Americans who have started seeking work has jumped. The number of unfilled openings fell sharply in June and July. Inflation in June and July, excluding volatile food and energy prices, posted its two lowest monthly readings in nearly two years.Īnd signs have grown that the job market isn’t as robust as it had been, which helps keep a check on inflation: The pace of hiring has moderated. Still, most economic data in the past two months has pointed in a positive direction. “We are at a point where things could plausibly go in a lot of different directions,” Sahm said. Or, she suggested, the cumulative effects of the Fed’s 11 rate hikes could ultimately tip the economy into recession. But she cautioned that inflation might stay higher for longer than the central bank expects. Claudia Sahm, a former Fed economist, said she thinks a “soft landing,” in which the Fed manages to curb inflation without causing a recession, remains possible. Inflation pressures showed signs of persistence in two government reports last week, adding some uncertainty to the outlook. This would underscore the Fed’s determination to keep rates elevated well into next year as it strives to get inflation down to its 2% target. Another rate hike this year will likely remain on the table, and Fed officials may project fewer cuts in their key rate next year than they did in June.
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