Will The Fed Raise Rates Again? Powell Remains Fixated On 2% Inflation Target

The likelihood of another Federal Reserve policy rate hike grew stronger on Friday after Fed Chairman Jerome Powell’s speech at the Jackson Hole Symposium.

  • During the speech, Powell reiterated that the Federal Reserve remains committed to bringing inflation down to 2%, despite some economists suggesting that achieving that target may be difficult.
  • “Two percent is and will remain our inflation target,” said Powell. Getting there, he added, will require a “period of below-trend economic growth.”

  • So far, the Fed isn’t getting the results it needs, as the economy “may not be cooling as expected,” he continued.
  • Earlier this week, popular economist Paul Krugman wrote a piece for the New York Times, arguing that the Fed may want to target 3% inflation instead, arguing that 2% is “probably bad economics.”
  • After the speech, the odds of a rate hike at the Fed’s next meeting in September rose to 19%, according to the CME FedWatch tool. Meanwhile, the odds of another hike this year rose to 52.1% – a two-month high.
  • Rate cuts, which many expect will trigger more investment into crypto and stocks, are not expected until June 2024.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

You Might Also Like:


.custom-author-info{ border-top:none; margin:0px; margin-bottom:25px; background: #f1f1f1; } .custom-author-info .author-title{ margin-top:0px; color:#3b3b3b; background:#fed319; padding:5px 15px; font-size: 20px; } .author-info .author-avatar { margin: 0px 25px 0px 15px; } .custom-author-info .author-avatar img{ border-radius: 50%; border: 2px solid #d0c9c9; padding: 3px; }

The post appeared first on CryptoPotato

Buy Bitcoin with Credit Card

BitMex Leverage Trading

Automated Trading Bot

Related Posts

Leave a Reply

Bitcoin (BTC) $ 97,600.15 4.12%
Ethereum (ETH) $ 3,304.54 6.75%
Tether (USDT) $ 0.999864 0.09%
Solana (SOL) $ 244.21 2.89%
BNB (BNB) $ 619.75 1.34%
XRP (XRP) $ 1.14 0.90%
Dogecoin (DOGE) $ 0.387993 0.64%
USDC (USDC) $ 0.999143 0.09%
Lido Staked Ether (STETH) $ 3,303.31 6.75%
Cardano (ADA) $ 0.805739 1.78%