U.S. Fed inclined toward more hikes to curb inflation, minutes show
Federal Reserve officials continued to anticipate further increases in borrowing costs would be necessary to bring inflation down to their 2 per cent target when they met earlier this month, though almost all supported a step down in the pace of hikes.
U.S central bankers raised interest rates by a qu.arter-point, moderating their action after a half-point hike in December and four consecutive jumbo-sized 75 basis-point increases. The move lifted the benchmark policy rate into a range of 4.5 per cent to 4.75 per cent. Both Chair Jerome Powell and the minutes indicated that officials are prepared to raise rates further to produce a broader slowdown in the economy that tamps down inflation.
Gapen’s forecast is for the Fed to continue tightening to a range of 5.25 per cent to 5.5 per cent, one hike above the 5.1 per cent median officials forecast in December.Going into the meeting, money markets forecast interest-rate cuts in the back half of 2023. They have since tempered bets on the likelihood that the Fed will reverse course and start cutting rates before the end of this year.
Treasury yields fluctuated while remaining lower on the day while the S&P 500 index closed slightly lower and the dollar remained higher.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. Federal Reserve inclined toward more hikes to curb inflation, minutes show - BNN BloombergU.S. Federal Reserve officials continued to anticipate further increases in borrowing costs would be necessary to bring inflation down to their 2 per cent target when they met earlier this month, though almost all supported a step down in the pace of hikes.
Read more »
U.S. stocks slide on Fed concern as dollar gets a bid - BNN BloombergU.S. equity-index futures and European stocks fell as investors worried about the prospects of interest-rates staying higher for longer and a deepening of geopolitical tensions.
Read more »
Oil eases in rangebound market as Fed and China demand face off - BNN BloombergOil edged lower as investors weighed the prospect for further U.S. monetary tightening against signs of improving demand from China following the end of COVID Zero.
Read more »
Oil extends longest run of losses this year ahead of Fed minutes - BNN BloombergOil extended its longest run of losses this year ahead of the release of Federal Reserve minutes that may provide further clues on the path forward for monetary tightening in the U.S.
Read more »
U.S. stocks fall, treasuries waver before Fed minutes - BNN BloombergGlobal stocks extended a selloff and Treasuries wobbled as investors looked ahead to Federal Reserve minutes for further clues on whether rates would stay higher for longer.
Read more »
Statistics Canada to release January inflation report today - BNN BloombergStatistics Canada is set to release its reading on inflation for January this morning.
Read more »