US Fed Anticipates Prolonged Period of High Interest Rates | Report

  • by:
  • Source: Wayne Dupree
  • 11/21/2023
According to the minutes of the meeting released on Tuesday, it was unanimously agreed by all members of the US Federal Reserve's rate-setting committee that maintaining high interest rates for an extended period would be a suitable approach to address the issue of inflation.

The Federal Reserve made an announcement on November 1 regarding the decision to maintain interest rates at a 22-year high for the second consecutive meeting. This decision is part of the Fed's strategy to effectively reduce inflation and ensure it remains at its desired long-term target of two percent. The intention behind this approach is to achieve these goals without negatively impacting the robust state of the economy.

The recent action taken by the Federal Reserve has led traders to believe that the central bank has completed its cycle of raising interest rates and is now entering a period of extended pause. However, it is important to note that Fed Chair Jerome Powell has stated that the possibility of future interest rate hikes remains on the table, should the need arise.

According to the minutes of the meeting published on Tuesday, the Federal Reserve stated that all participants agreed that it would be suitable for policy to maintain a restrictive stance until inflation shows a sustained decrease towards its target of two percent.

Despite the Federal Reserve's decision to implement a more stringent monetary policy starting in March of the previous year, the economy has continued to experience robust growth. Additionally, the labor market has remained relatively strong, although there have been some indications of a recent slowdown.

The likelihood of a "soft landing" has been increased by the strong recent economic data. This refers to a scenario where the Federal Reserve successfully addresses inflation without causing a recession in the United States.


According to the Federal Reserve, the economic forecasts that were prepared by their staff for the rate-setting meeting held on October 31 and November 1 indicated an anticipated significant slowdown in the fourth-quarter GDP growth compared to the rate observed in the third quarter. This information was disclosed by the Federal Reserve on Tuesday.

According to the statement, the projected average GDP growth for the second half of the year was expected to be slightly faster than the pace observed in the first half.

In September, the Federal Reserve made a statement regarding its expectations for the growth of the United States economy. According to their projections, they anticipate a growth rate of 2.1 percent for the current year. Looking ahead to the year 2024, the Federal Reserve predicts a growth rate of 1.5 percent.


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