"Jerome Powell" signals a delay in raising interest rates this December, warning Americans face "inflation" in 66.
Bloomberg News reported on November 28, 2565 that Federal Reserve Chairman Jerome Powell is expected to meet expectations that the Federal Reserve will delay raising interest rates this month. December 2565 and warns Americans they will have to fight inflation through 2566.
Powell is scheduled to deliver a speech. That focused on the labor market at an event on Wednesday (Nov. 30) organized by the Brookings Institution in Washington. Before the meeting begins on 13-14 December 2565
The event gave Powell a platform to echo Fed officials in signaling they would raise the benchmark interest rate by 0.50% at their final meeting of the year. After rising 0.75% a total of 4 times in a row But with inflation still above the central bank's target of 2%, he is likely to discuss cuts with warnings that rates will rise further in 2566.
Julia Coronado, co-founder of MacroPolicy Perspectives, said: “He could have used the speech to explain the dimensions of the inequality in the labor market. Powell could frame labor market changes as a reason they need to hold on to tighter policies longer.”
Investors expect the Fed to delay raising the policy interest rate next month. with a maximum rate of approximately 5% in 2566 from the current rate of 3.75-4.00%.
That expectation is consistent with Powell's remarks after the Fed's meeting earlier this month. When indicating that the interest rate increase may be reduced soon this next month Even if they eventually raise interest rates to a higher peak than previously thought.
However, minutes from the Nov. 1-2 meeting show widespread support among officials for raising interest rates. The majority agrees that it will soon be time to slow the rate of increase. But views on how high borrowing costs will ultimately need to be raised are less clear.
September sees rates as high as 4.4% by the end of this year and 4.6% by the end of next year. According to the median forecast published after that meeting.
