FOMC reaction: Wall Street discusses what will the Fed do next
Federal Reserve officials raised a growing concern about inflation at their most recent meeting, with members showing a lack of confidence to proceed with interest rate reductions.
“Participants observed that while inflation had eased over the past year, in recent months there had been a lack of further progress toward the Committee’s 2 percent objective,” the summary stated. The FOMC unanimously voted to hold its benchmark short-term borrowing rate in the range of 5.25%-5.5%, a 23-year high where it has remained since July 2023.
Citi also said it does not see the Fed officials' uncertainty regarding the degree of policy restrictiveness as particularly new or different, noting that this has been a topic of extensive discussion since at least the March FOMC meeting. Although moderating growth supports the case for a cut, Nomura does not expect a sharp slowdown in hard spending data or headline job gains that would necessitate action by July.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street gains on Fed's dovish signalsWall Street gains on Fed's dovish signals
Read more »
Wall Street reacts to Fed's decision to keep rates on hold, Powell's remarksWall Street reacts to Fed's decision to keep rates on hold, Powell's remarks
Read more »
CNBC Daily Open: New highs on Wall Street, Fed's Waller says rate cuts months awayFederal Reserve Governor Christopher Waller said he does not think further rate increases are necessary, but he will need convincing before backing any rate cuts.
Read more »
Wall Street gains on Fed's dovish signalsWall Street's main indexes advanced on Thursday, a day after the Federal Reserve left interest rates unchanged and signaled a dovish tilt, with focus moving to a crucial job report later in the week.
Read more »
Wall Street swings after Fed keeps interest rates high, downplays odds of a hikeU.S. stocks finished mixed after the head of the Federal Reserve said the cuts to interest rates that Wall Street craves so much are still likely, even if they’re delayed because of stubbornly high inflation
Read more »
S&P 500 falls as Wall Street readies for Fed rate decision: Live updatesThe Federal Reserve will issue its rate policy decision on Wednesday, and traders will be fixated on policymakers' reluctance to cut.
Read more »