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Amidst inflation surge, Fed's rate cut expectations shift to 2024-end. Deutsche Bank AG and Bank of America Corp. economists align with concerns, now anticipating the Fed to ease policy once, in December.

U.S Fed likely to cut rates later rather than sooner; say experts

Amidst inflation surge, Fed's rate cut expectations shift to 2024-end. Deutsche Bank AG and Bank of America Corp. economists align with concerns, now anticipating the Fed to ease policy once, in December.

Amidst escalating concerns over inflationary pressures, the United States Federal Reserve's timeline for interest rate cuts has shifted, possibly postponed. The latest inflation data, showcasing a persistent surge in price growth surpassing the Fed's 2% target, has spurred a reevaluation of earlier expectations. The inflation data indicates that consumer prices have been rising at a faster-than-expected pace, This trend suggests that the cost of goods and services is increasing at a rate that may outpace wage growth, leading to decreased purchasing power for consumers. In light of these developments, experts are revising their projections for the timing of potential rate cuts by the Federal Reserve. Previously, there was speculation among analysts that rate cuts could occur as early as June. However, the latest assessments suggest a significant shift in expectations, with forecasts now pointing towards a delay in rate adjustments until the latter part of 2024. The International Monetary Fund's Managing Director, Kristalina Georgieva, has weighed in, projecting that the Federal Reserve might opt for a reduction in interest rates by the end of 2024. Georgieva's prudent counsel emphasizes the importance of patience, urging the Fed to base its decisions on concrete data trends rather than rushing into premature actions, reported CNBC Deutsche Bank AG and Bank of America Corp. economists have revised their forecasts, aligning with the apprehensions regarding inflation. Both institutions now anticipate the Federal Reserve to ease policy only once this year, in December, a notable departure from earlier predictions of rate cuts commencing as early as June, reported Bloomberg.
The prospect of delayed rate cuts has triggered a pullback in the U.S. stock market, with the benchmark S&amp;P 500 experiencing a nearly 2% decline since the beginning of April. Analysts suggest that Fed funds futures pricing data indicates a possible rate cut by September, according to the CME FedWatch Tool.
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Wall Street closed higher as the Federal Reserve kept interest rates steady, hinting at potential future rate cuts amid optimistic economic projections

Wall Street rallies as Fed holds rates, still sees 3 rate cuts in 2024

Wall Street closed higher as the Federal Reserve kept interest rates steady, hinting at potential future rate cuts amid optimistic economic projections

Wall Street closed higher on Wednesday following the Federal Reserve's decision to maintain current interest rates, Fed also signaled a possibility of up to three rate cuts later this year.
The Fed's policy statement acknowledged "elevated" inflation while revising economic projections upwards for growth and downwards for the unemployment rate compared to December estimates. Investor confidence was further buoyed by remarks from Fed Chair Jerome Powell during a press conference. Despite recent inflation figures surpassing expectations, Powell affirmed the central bank's stance of gradual inflation decline, attributing the recent data fluctuations to a "somewhat bumpy road."
Analysts noted a dovish undertone in Powell's comments, indicating a potential slowdown in the Fed's bond holdings drawdown. Alex Coffey, senior trading strategist at TD Ameritrade, observed Powell's subtle reassurance to the market amidst concerns over inflationary pressures.
Major indices witnessed significant gains, with the Dow Jones Industrial Average rising by 1.03%, the S&amp;P 500 by 0.89%, and the Nasdaq Composite by 1.25%. Notably, five of the S&amp;P's 11 sectors surged over 1%, with consumer discretionary leading the rally with a 1.5% increase.
However, the healthcare sector experienced a downturn, with BioNTech reporting a steep decline in revenue and earnings due to a shift in focus towards cancer drug development. Shares of COVID-19 vaccine makers Moderna and Novavax also saw declines.
In the consumer sector, Amazon and Tesla contributed to gains, with Tesla announcing a price hike for its China-produced Model Y vehicles. Chipotle Mexican Grill shares surged after the approval of a stock split, while Equinix faced a decline following a short position taken by Hindenburg Research.
Advancing issues outnumbered decliners significantly on the NYSE, showcasing strong market breadth. The S&amp;P 500 and Nasdaq recorded numerous new highs compared to new lows.
Overall, Wednesday's market performance reflected investor optimism driven by the Fed's commitment to maintaining accommodative monetary policy in response to evolving economic conditions. Also Watch: <a href="https://www.editorji.com/business-news/markets/sensex-nifty-rebound-as-reliance-itc-shares-rally-1710939863429">Sensex, Nifty rebound as Reliance, ITC shares rally</a>

US Fed Meeting 2024: Powell-led FOMC keeps key interest rates unchanged at 5.25-5.50% for 4th straight meeting.

US Fed Meeting 2024: Federal Reserve holds interest rates steady, Powell signals no rate cut in March

Federal Reserve maintains rates, hints at potential 2024 cut. Powell's cautious stance eases market uncertainties, as inflation shows signs of improvement

Federal Reserve holds rates steady, Powell signals no rate cut in March

<h2>Federal Reserve maintains rates, hints at potential 2024 cut. Powell's cautious stance eases market uncertainties, as inflation shows signs of improvement</h2>

US Fed Rate: The US Federal Reserve opted to maintain its key interest rates unchanged for the fourth consecutive meeting, reinforcing its commitment to a steady monetary policy. The decision, announced on Wednesday, holds the benchmark lending rate between 5.25 and 5.50%, marking a continuation of the 23-year high.
<h3>US Fed Meeting 2024</h3>
In a statement, the Federal Reserve acknowledged that the risks to achieving its employment and inflation goals were moving into better balance. The central bank has been focused on curbing inflation, with a specific target of 2% and emphasized that the rate-setting Federal Open Market Committee (FOMC) is unlikely to consider cutting interest rates until there is greater confidence in sustainable inflation progress.
Federal Reserve Chair Jerome Powell, speaking at a press conference following the decision, indicated that the policy rate was likely at its peak for the current tightening cycle. Powell expressed the belief that the committee would favor a rate cut in 2024, but he downplayed the possibility of such a move in the upcoming March meeting, citing the need for greater confidence in inflation trends.
Market reactions were immediate, with Wall Street stocks closing down sharply as traders digested the news. Analysts, including EY chief economist Gregory Daco, interpreted Powell's remarks as reinforcing the expectation that rate cuts might commence in May.
The decision comes amid strong economic data, with inflation showing signs of slowing down after a post-pandemic surge. The Fed's favoured inflation measure has dropped below an annual rate of 3%, while economic growth remained robust at 2.5% in 2023.
Analysts noted that Powell's guidance, coupled with the positive economic indicators, suggests a cautious approach by the Fed, with the first-rate cut likely to occur in May or June rather than March. Traders are now placing a greater-than-90% probability on a lower key lending rate by May 1, signalling increased confidence in a future cut.

The most recent government report on consumer prices highlighted enduringly high inflation in specific sectors like healthcare, housing, dining, and various services.

Federal Reserve holds rates steady, indicates three cuts in 2024

The most recent government report on consumer prices highlighted enduringly high inflation in specific sectors like healthcare, housing, dining, and various services.

The Federal Reserve kept its key interest rate unchanged Wednesday for a third straight time, a sign that it is likely done raising rates after having imposed the fastest string of increases in four decades to fight painfully high inflation.
The Fed's policymakers also signalled that they expect to make three quarter-point cuts to their benchmark interest rate next year, fewer than the five envisioned by financial markets and some economists. The relatively few number of rate cuts forecast for 2024 &mdash; which may not begin until the second half of the year &mdash; suggest that the officials think high borrowing rates will still be needed for most of next year to further slow spending and inflation.
Still, in a statement it issued after its 19-member policy committee met Wednesday, the Fed said that &ldquo;inflation has eased over the past year, but remains elevated.&rdquo; It was the first time since inflation first spiked that the Fed has formally acknowledged progress in its fight against accelerating prices. The central bank also provided a hint that its rate cut efforts may be over, saying it is now considering whether &ldquo;any additional&rdquo; hikes are needed.
The Fed kept its benchmark rate at about 5.4%, its highest level in 22 years, a rate that has led to much higher costs for mortgages, auto loans, business borrowing and many other forms of credit. Higher mortgage rates have sharply reduced home sales. Spending on appliances and other expensive goods that people often buy on credit has also declined.
So far, the Fed has achieved what few observers had thought possible a year ago: Inflation has tumbled without an accompanying surge in unemployment or a recession, which typically coincide with a central bank's efforts to cool the economy and curb inflation. Though inflation remains above the Fed's 2% target, it has declined faster than Fed officials had expected, allowing them to keep rates unchanged and wait to see if price increases continue to ease.
At the same time, the government's latest report on consumer prices showed that inflation in some areas, particularly health care, apartment rents, restaurant meals and other services, remains persistently high, one reason why Fed Chair Jerome Powell is reluctant to signal that policymakers are prepared to cut rates anytime soon.
On Wednesday, the Fed's quarterly economic projections showed that its officials envision a &ldquo;soft landing&rdquo; for the economy, in which inflation would continue its decline toward the central bank's 2% target without causing a steep downturn. The forecasts showed that the policymakers expect to cut their benchmark rate to 4.6% by the end of 2024 &mdash; three quarter-point reductions from its current level.
A sharp economic slowdown could prompt even faster rate reductions. So far, though, there is no sign that a downturn is imminent.
Rate cuts by the Fed would reduce borrowing costs across the economy. Stock prices could rise, too, though share prices have already rallied in expectation of rate cuts, potentially limiting any further increases.
Powell, though, has recently downplayed the idea that rate reductions are nearing. He hasn't yet even signalled that the Fed is conclusively done with its hikes.
One reason the Fed might be able to cut rates next year, even if the economy plows ahead, would be if inflation kept falling, as expected. A steady slowdown in price increases would have the effect of raising inflation-adjusted interest rates, thereby making borrowing costs higher than the Fed intends. Reducing rates, in this scenario, would simply keep inflation-adjusted borrowing costs from rising.
Recent economic data have modestly cooled financial markets' expectations for early rate cuts. Last week's jobs report for November showed that the unemployment rate fell to 3.7%, near a half-century low, down from 3.9% as businesses engaged in solid hiring. Such a low unemployment rate could force companies to keep raising pay to find and retain workers, which would fuel inflationary pressures.
And consumer prices were mostly unchanged last month, the government said Tuesday, suggesting that while inflation is likely headed back to the Fed's 2% target, it might take longer than optimists expect. The central bank, as a result, could opt to keep rates at their current level to try to ensure that prices resume their downward path.The Fed is the first of several major central banks to meet this week, with others also expected to keep their rates on hold. Both the European Central Bank and the Bank of England will decide on their next moves Thursday.&nbsp; Also Watch: <a href="https://www.editorji.com/business-news/markets/fed-s-policy-announcement-key-expectations-1698839000739#google_vignette">Fed&rsquo;s policy announcement: Key expectations</a>

Powell's comments come just over a week after the US central bank voted to hold interest rates steady at a 22-year high for a second consecutive meeting, fueling expectations that it was done with rate hikes

US Federal Reserve might raise rates once more if deemed 'appropriate': Powell

<h2>Powell's comments come just over a week after the US central bank voted to hold interest rates steady at a 22-year high for a second consecutive meeting, fueling expectations that it was done with rate hikes</h2>

On Thursday, Federal Reserve Chair Jerome Powell asserted that the U.S. central bank is prepared to raise interest rates further if necessary to bring inflation down to its long-term target of two percent. Powell addressed a Washington conference, acknowledging the uncertainty in achieving the inflation goal and stating that if tightening policy is deemed appropriate, the Fed will not hesitate to do so. These remarks followed the recent decision by the central bank to maintain interest rates at a 22-year high for the second consecutive meeting, sparking expectations that it had concluded its rate-hiking cycle.
Powell emphasized the Fed's commitment to attaining a sufficiently tight monetary policy stance, but expressed a lack of confidence in having achieved such a position. Despite concerns about the potential for a resurgence of inflation, Powell suggested that the Fed likely considers its current monetary policy to be significantly restrictive. He noted the careful monitoring of the policy's impact on the economy and highlighted the strong economic growth and relatively robust labor market, albeit with recent signs of a slowdown.
Even with the Fed's assertive monetary tightening, which raised rates to a range between 5.25-5.50 percent, the U.S. economy continues to demonstrate strength. The recent positive economic indicators have increased the probability of a "soft landing," where the Fed effectively addresses inflation without pushing the country into a recession.

Federal Reserve keeps interest rates stable, acknowledging the robust US economy. Officials express confidence in economic growth, leaving room for future hikes

Federal reserve maintains interest rates amid strong economic growth

<h2>Federal Reserve keeps interest rates stable, acknowledging the robust US economy. Officials express confidence in economic growth, leaving room for future hikes</h2>

The Federal Reserve opted to maintain the current interest rates, keeping them unchanged while acknowledging the United States' robust economy. The decision was reached during a two-day meeting where officials unanimously agreed to maintain the benchmark overnight interest rate within the 5.25%-5.50% range, a status quo since July.
The policy statement released by the U.S. central bank highlighted the nation's economic strength, particularly in the third quarter, during which economic activity expanded at a formidable pace. This positive development represented an upgrade from the "solid pace" observed in the previous months. Recent data revealed a 4.9% annual growth rate in the U.S. gross domestic product for the third quarter, reinforcing the Fed's confidence in the economy.
While there is speculation in the markets that the Fed might halt its policy rate increases due to natural financial tightening caused by higher market-based interest rates, the central bank has not ruled out the possibility of future hikes. The decision reflects the delicate balance the Fed seeks to maintain between acknowledging the economy's strength and addressing the evolving financial conditions faced by businesses and households.
As the U.S. economy demonstrates resilience and growth, the Federal Reserve's decision to leave interest rates unchanged signals cautious optimism for the nation's financial future. Also Watch: <a href="https://www.editorji.com/business-news/markets/fed-s-policy-announcement-key-expectations-1698839000739">Fed&rsquo;s policy announcement: Key expectations</a>

US Economy 2023: The U.S GDP in the 3rd quarter grew at a 4.9% annualized increase in gross domestic product, aided by a resilient job market that helped boost consumer spending.

US Economy 2023: US GDP grew at 4.9% in 3rd quarter; fastest growth rate in nearly 2 years

The U.S economy in the third quarter grew at 4.9% annualised increase in gross domestic product, aided by a resilient job market that helped boost consumer spending

U.S economy grew at 4.9% in third quarter; fastest growth rate in nearly two years

<h2>The U.S economy in the third quarter grew at 4.9% annualised increase in gross domestic product, aided by a resilient job market that helped boost consumer spending</h2>

US Economy 2023: The U.S economy grew at a more than expected speed in the third quarter aided by a resilient job market that helped boost consumer spending. This in turn is holding off the prospect of a recession.
<h3>US GDP growth</h3>
The strong consumer spending was the main driver of a 4.9% annualised increase in gross domestic product, according to the U.S government data. That was a jump from a 2.1 per cent rate in the second quarter, and the strongest figure since the fourth quarter of 2021.&nbsp;
Also Read: <a href="https://www.editorji.com/business-news/india-to-overtake-japan-as-asia-s-second-largest-economy-by-2030-s-p-global-report-1698150492888">India to overtake Japan as Asia's second-largest economy by 2030: S&amp;P Global report</a>
This comes at a time, when the U.S Fed is preparing for a meeting next week to decide the interest rates.The central bank has been trying to use higher rates to bring inflation back towards its 2% target without causing a sharp deterioration in the economy.
As per AFP, analysts have raised fears of a downturn as the US central bank started lifting interest rates rapidly last year to fight inflation, but the world's biggest economy has so far defied these predictions.
<h3>Consumer Spending in US</h3>
The consumer spending in the United States rose at an annualised rate of 4%, up from just 0.8% in the second quarter. The solid growth was seen both in goods and services sector.&nbsp;
AFP quoted some Analysts and mentioned that the growth is expected to slow in the final three months of this year.&nbsp;
"As excess savings built up during the pandemic continue to drop and wage gains decelerate, it is difficult to see how this pace of consumer spending growth can be maintained," economist Mike Fratantoni at the Mortgage Bankers Association told AFP.
He further mentioned that the rising delinquency level in credit cards and auto loans are expected to hold back consumer spending.

Federal Reserve is expected to raise rates by 25 basis points in its policy meeting this week versus a 50 basis points hike that was expected earlier prior to the collapse of Silicon Valley Bank and the following banking crisis

Federal Reserve's policy meeting: Here's what to expect 

Federal Reserve is expected to raise rates by 25 basis points in its policy meeting this week versus a 50 basis points hike that was expected earlier prior to the collapse of Silicon Valley Bank and the following banking crisis

This week's policy meeting of the Federal Reserve comes amid a challenging scenario in the U.S that stemmed from the collapse of Silicon Valley Bank and the following repurcussions.&nbsp;
In what is a crucial policy meeting, the Fed will weigh whether to continue raising interest rates to clamp down on inflation or to pause the rate hikes amid the market turmoil.&nbsp;
As per Bloomberg, before the collapse of Silicon Valley Bank and the resulting fallout, Fed policy makers were poised to raise rates by as much as 50 basis points after a string of data suggested the economy was much stronger than officials thought at the beginning of the year.&nbsp;
While there are those who believe that the Fed must pause on rate hikes given the macro envioronment, other are of the view that Fed may go ahead with a 25 basis points rate hike during this week's policy meet.&nbsp;
The Fed's decision follows a 50-basis-point rate hike from the European Central Bank on Thursday. President Christine Lagarde said the ECB remains committed to fighting inflation, while monitoring bank tensions closely.
Previously, the Fed announced four consecutive rate hikes, ranging from 25 bps to 75 bps.&nbsp;
The Federal Reserve officials are also expected to discuss the failure of the two U.S banks as well as the Credit Suisse crisis.
&nbsp;

US consumer inflation cooled slightly in January but the figure remains markedly above policymakers' target, boosted by rent and energy costs
 
 

US inflation eases but how policymakers' battle not over

US consumer inflation cooled slightly in January but the figure remains markedly above policymakers' target, boosted by rent and energy costs
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Rising rent and a gasoline price rebound helped keep US consumer prices elevated in January, according to data released on Tuesday, signaling that policymakers' battle against inflation is not over.
US Inflation data&nbsp;
The US central bank has hiked interest rates rapidly in the past year to raise borrowing costs and cool demand in the world's biggest economy, as inflation skyrocketed.
But even as the consumer price index (CPI), an important inflation gauge, eases from decades-high levels, the numbers point to some stickier areas.
With the effects of policy rippling through the economy, the CPI rose 6.4 percent in January from a year ago, according to Labor Department data. This was a touch below December's figure and the smallest annual increase since October 2021.
But it remains significantly above policymakers' two percent target.

The Fed has cranked up interest rates eight times since March 2022, including four consecutive 0.75 percentage point increases

Fed announces smaller rate hike, signals inflation fight not over

The Fed has cranked up interest rates eight times since March 2022, including four consecutive 0.75 percentage point increases

US's Federal Reserve slowed its pace of interest rate hikes Wednesday, tempering an aggressive campaign to rein in costs as inflation cools, but signaled the battle is not yet over.
The US central bank announced a quarter-point hike to the benchmark lending rate at the end of its two-day policy meeting, taking the rate to a target range of 4.50-4.75 percent.
"Inflation has eased somewhat but remains elevated," said the Fed's policy-setting Federal Open Market Committee (FOMC) in a statement.
While recent developments are encouraging, officials will need "substantially more evidence" to be confident that inflation is on a sustained downward path, Fed Chair Jerome Powell told a press briefing.
According to the FOMC statement, "the committee anticipates that ongoing increases in the target range will be appropriate" to bring inflation back to policymakers' two percent target.
The Fed has cranked up interest rates eight times since March 2022, including four consecutive 0.75 percentage point increases, lifting borrowing costs in hopes of dampening demand.

Many economists expect the U.S. to enter a recession in the coming months

Fed officials expect higher rates for some more time  

Another rate hike on Feb 1?

Many economists expect the U.S. to enter a recession in the coming months

As the battle against inflation remain in place, US central bankers do not expect it will be "appropriate" to start cutting interest rates this year.&nbsp;
While the Fed had slowed its pace of rate increases in December after several steep rate hikes, the minutes of the latest Federal Reserve policy meeting report shows officials were also concerned about any "misperception" of their moves.
The Fed has waged an all-out campaign to cool the world's biggest economy as inflation surged to a 40-year high last year, raising the benchmark lending rate seven times to ease demand.
This brought the rate to a range between 4.25 and 4.50 percent after the Fed's December meeting, the highest level since 2007.

While announcing the policy rate, Fed will also give guidance on inflation, GDP growth and unemployment numbers

Fed meeting will set the table for 2023; Raise rates again?

While announcing the policy rate, Fed will also give guidance on inflation, GDP growth and unemployment numbers

Investors are bracing for a week of swings in U.S. stocks ahead of key inflation data, the Federal Reserve's last policy meeting of 2022 and the final monthly options expiration of the year.
According to experts, Fed is widely expected to raise rates by 50 basis points on Wednesday at its last meeting of 2022, a step down from the 75 basis points hike in last few meetings.
Ahead of the Fed decision, all eyes are also on the United State's consumer price index report for November. Economists expect core annual inflation to ease to 6.1 percent in November, compared to rise of 6.3 percent in the previous month.
US markets ended positive on Monday ahead of Federal Reserve's meeting which begins today. Dow 30 ended at 34,005, up 528.58 points or 1.58 per cent while S&amp;P 500 closed at 3,990.56, up 56.18 points or 1.43 per cent. Nasdaq Composite 11,143.70, down 139.12 or 1.26 per cent.&nbsp;

US: India-origin woman becomes 1st Vice President, COO of Federal Reserve Bank of New York

Sushmita Shukla: India-origin woman becomes 1st Vice President, COO of Federal Reserve Bank of New York

Shukla, 54, has been appointed by the Board of Directors of the Federal Reserve Bank of New York as First Vice President and Chief Operating Officer, effective March 2023.

Sushmita Shukla, an Indian-origin veteran of the insurance industry, has been appointed as First Vice President and Chief Operating Officer at the Federal Reserve Bank of New York, making her the second-ranking officer at the prominent institution.
The appointment was approved by the Board of Governors of the Federal Reserve System, the New York Fed said in a statement Thursday.
Shukla, 54, has been appointed by the Board of Directors of the Federal Reserve Bank of New York as First Vice President and Chief Operating Officer, effective March 2023.
As First Vice President, Shukla, who has an MBA from New York University and a bachelor&rsquo;s degree in electrical engineering from the University of Mumbai, will be the New York Fed&rsquo;s second-ranking officer.
Shukla said in the statement that she is honoured to have the opportunity to work for a mission-driven organisation like the New York Fed.
ALSO WATCH: <a title="New York Times braces for 24-hour newsroom strike" href="https://www.editorji.com/world-news/new-york-times-braces-for-24-hour-newsroom-strike-1670468919247">New York Times braces for 24-hour newsroom strike</a>

Following Powell's remarks, US stocks rallied, with the tech-rich Nasdaq Composite Index surging more than three percent

US central banks signals shift to slower interest rate increases

Following Powell's remarks, US stocks rallied, with the tech-rich Nasdaq Composite Index surging more than three percent

The head of the US central bank has said authorities may start to ease its pace of interest rate hikes "as soon as" December, after racing to raise borrowing costs earlier this year.&nbsp;
He added that the full effects of the bank's moves are yet to be felt, but also warned that its policy will likely have to remain tight "for some time" to restore price stability.
Following Powell's remarks, US stocks rallied, with the tech-rich Nasdaq Composite Index surging more than three percent.
The central bank has raised the benchmark lending rate by 0.75 percentage points four consecutive times in recent months, out of six rate hikes this year in an aggressive effort to rein in prices.
The latest increase in November took the benchmark lending rate to 3.75-4.0 percent, the highest since January 2008.

The minutes helped US stocks recover from an earlier swoon, while the dollar retreated

Most Fed officials see slower rate hike pace, minutes show

The minutes helped US stocks recover from an earlier swoon, while the dollar retreated

A majority of US Federal Reserve policymakers found that a slower pace of interest rate hikes would "likely soon be appropriate," according to the minutes.&nbsp;
The Fed has embarked on an aggressive path to cool demand and bring down prices as inflation in the world's biggest economy surged to the highest level in decades, raising the benchmark borrowing rate six times this year.
With inflation hovering around 7.7 percent, the latest policy meeting in early November produced a fourth consecutive three-quarter point interest rate hike, a major rise.
The minutes noted that the smaller hikes would give policymakers a chance to evaluate the impact of the succession of rate hikes. The central bank&rsquo;s next interest rate decision is Dec. 14.

The latest three-quarter percentage point increase takes the benchmark lending rate to 3.75-4.0 percent, the highest since January 2008

Fed delivers another steep rate hike with more to come

Another rate hike is here; Fed hikes interest rates 75 basis points

Fed delivers big rate hike

The latest three-quarter percentage point increase takes the benchmark lending rate to 3.75-4.0 percent, the highest since January 2008

In yet another decision, the US Federal Reserve delivered their fourth straight 75 basis-point interest rate with its move to cool red-hot inflation.
The unanimous decision lifts the target for the benchmark federal funds rate to a range of 3.75% to 4%, its highest level since 2008.
The policy-setting Federal Open Market Committee (FOMC) said more increases will be needed to tamp down rising prices but it will consider the impact on the economy when deciding on the pace of future moves -- opening the door to the possibility it will implement smaller steps in coming months.
Powell further said that the committee could begin discussing the possibility of slowing the aggressive pace of rate increases at the December meeting.

Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth
 

US Fed set for further steep rate hike as recession fears loom?

Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth
&nbsp;

The US Federal Reserve is pegged to make a fourth straight steep hike in the key interest rate this week as it battles surging costs, with its aggressive stance fueling expectations of a recession.
American households have been squeezed by soaring consumer prices, propelling economic issues to the top spot among voter concerns in upcoming midterm elections. Fed officials walk a tightrope to try and rein in prices while avoiding a downturn.
To raise borrowing costs and cool demand, the US central bank has already cranked up the benchmark lending rate five times this year, including three straight 0.75 percentage point raises.
But with persistently high inflation and a tight labor market supporting wages and spending, analysts say another 0.75 point hike is almost certain at central bankers' next policy meeting.
Further Fed hikes are also expected to dampen consumer and business spending, making it more attractive to save rather than spend.
Analysts warn that the economy could enter a recession in 2023 on the effects of the Fed's rate hikes, inflation and a global slowdown in growth.

Making to the third consecutive increase, the Federal Reserve raised the key US interest rate again Wednesday and said more hikes are coming as it battles soaring prices . 
 

Federal Reserve raises key interest rate again

Federal Reserve rolled out another steep increase in the key US interest rate and said more hikes are coming as part of the battle to rein in soaring prices

Fed hikes rates again

It was the third consecutive increase of 0.75 percentage point by Fed reserve, continuing the forceful action to tamp down inflation that has surged to the highest in 40 years

Making to the third consecutive increase, the Federal Reserve raised the key US interest rate again Wednesday and said more hikes are coming as it battles soaring prices .&nbsp;
By raising borrowing rates, the Fed makes it costlier to take out a mortgage or an auto or business loan. Consumers and businesses then presumably borrow and spend less, cooling the economy and slowing inflation.
The officials also forecast that they will further raise their benchmark rate to roughly 4.4% by year's end, a full percentage point higher than they had forecast as recently as June.
The central bank's action Wednesday followed a government report last week that showed high costs spreading more broadly through the economy.
&nbsp;

The combined fortunes of American richest billionaires tumbled by $93 billion on Tuesday as U.S consumer prices unexpectedly rose in August. According to reports by Bloomberg, Jeff Bezos suffered the most as he saw $9.8 billion erased from his wealth. Elon Musk, also taking second place on the list lost $8.4 billion. 
The fortunes of Mark Zuckerberg, Larry Page, Sergey Brin and Steve Ballmer all declined by more than $4 billion, while Warren Buffett and Bill Gates lost $3.4 billion and $2.8 billion, respectively. 
The sharp fall in the US indices comes in the backdrop that it gives away any hope of mild rate hike by the US Federal Reserve in its meeting later this month.   
In August, the Consumer Price Index for All Urban Consumers increased 0.1 percent and rose 8.3 percent over the last 12 months. From 8.5% in July, the inflation figures, however, eased on a month-on-month basis.  
The disappointing data means traders are bracing for the Federal Reserve to ultimately raise interest rates even higher than expected to combat inflation, with all the risks for the economy that entails.

World's richest lose $93 bn as US inflation soars

The Dow Jones Industrial Average fell 374.84 points, or 1.16%, at the open to 32,006.50

The combined fortunes of American richest billionaires tumbled by $93 billion on Tuesday as U.S consumer prices unexpectedly rose in August. According to reports by Bloomberg, Jeff Bezos suffered the most as he saw $9.8 billion erased from his wealth. Elon Musk, also taking second place on the list lost $8.4 billion.&nbsp;
The fortunes of Mark Zuckerberg, Larry Page, Sergey Brin and Steve Ballmer all declined by more than $4 billion, while Warren Buffett and Bill Gates lost $3.4 billion and $2.8 billion, respectively.&nbsp;
This comes after the US inflation data for the month of August triggered concerns over the possibility of further rate hikes by the US Federal Reserve. Contrary to expectations, the US Consumer Price Index (CPI) rose 8.3 per cent in August. It was estimated to rise 8.1 per cent on an annual basis.&nbsp;
The disappointing data means traders are bracing for the Federal Reserve to ultimately raise interest rates even higher than expected to combat inflation, with all the risks for the economy that entails.

Fed Rate Hike : The Federal Reserve raised rates by yet another 75 bps and kept the door open for a another hike. The markets however rallied sharply in the US despite the rate hike as Fed Chief Jerome Powell said.

Fed rate hike to massive market rally: All that happened overnight

Fed raises rates but Fed Chief Powell's comments power up the markets

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<div class="abstract-item-text__d2d4dde8">Powell said pace of Fed rate increases will slow at some point</div>
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Fed Rate Hike : The Federal Reserve raised rates by yet another 75 bps and kept the door open for a another hike. The markets however rallied sharply in the US despite the rate hike as Fed Chief Jerome Powell&nbsp;said he does not think the US is currently in a recession. With 75 bps done again, it takes the cumulative June-July increase to 150 basis points, which is the steepest move up since the early 1980s.&nbsp;
The <a href="https://www.editorji.com/business-news/stock-market-live-udpates-sensex-nifty-crack-on-fed-rate-hike-fears-1650599602810">Fed's latest hike</a> lifts the benchmark short-term rate to its highest level since 2018. The central bank is betting that it can slow growth just enough to tame inflation yet not so much as to trigger a recession.
The Dow Jones Industrial Average closed 1.37% higher, or 436 points, to close at 32,197.
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The S&amp;P 500 gained 2.6%- 102 points higher at 4,023 while the technology heavy Nasdaq jumped by 4.06% - the most in over two years - to close 469 points higher at 12,032.

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