FOMC

2022 - 7 - 27

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Image courtesy of "The Wall Street Journal"

Fed Meeting Today Live: Investors Expect 0.75-Percentage-Point ... (The Wall Street Journal)

The rate rise the Federal Reserve is almost certain to deliver Wednesday will likely draw a formal objection by a veteran policy maker who was once the ...

More rate rises loom as the year progresses.\n\n“More abrupt changes in interest rates could create strains, either in the economy or financial markets, that would undermine the Fed’s ability to deliver on the higher path of rates communicated,” Ms. George said earlier this month.\n\nMs. George’s objection is unlikely to find much favor with the other officials who vote Wednesday. The policy maker is also set to retire at the start of the new year. The rate rise the Federal Reserve is almost certain to deliver Wednesday will likely draw a formal objection by a veteran policy maker who was once the institution’s most steadfast hawk.\n\nFederal Reserve Bank of Kansas City leader Esther George looks set to vote against the 0.75 percentage point rate rise her colleagues on the Federal Open Market Committee seem a lock to deliver, as the Fed continues on its aggressive quest to lower very high levels of inflation.\n\nIf Ms. George dissents, it would mark her second “no” vote this year: She also opposed the three-quarters of a percentage point rate rise in June. Another dissent would be a notable change in disposition relative to other central bankers. The Fed has taken its federal funds target rate range from near zero levels in March to what’s likely between 2.25% and 2.50%, a level last seen at the end of 2018.

Federal Reserve issues FOMC statement (Federal Reserve)

Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained ...

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve's Balance Sheet that were issued in May. The Committee is strongly committed to returning inflation to its 2 percent objective. Russia's war against Ukraine is causing tremendous human and economic hardship. Recent indicators of spending and production have softened.

Full FOMC statement from the July 2022 Fed meeting (ForexLive)

Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low ...

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2-1/2 percent and anticipates that ongoing increases in the target range will be appropriate. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Conversely, inflation that is too low (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the forex market. Read this Term's Balance Sheet that were issued in May. The Committee is strongly committed to returning inflation to its 2 percent objective. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured with GDP). As such, this generates pressure of demand on a supply that does not increase at the same rate. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on foreign exchange. In doing so, this makes it possible to determine the country with the most expensive cost of living.The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates on the forex market.Interest rates are also impacted. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential.

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