The US Federal Reserve (Fed) is preparing to slow its interest rate walking long distances next Economists say, as the most powerful central bankers moves in contracts for fight Inflation rippled through economy.
But the half-Point jump Analysts expect to see in Fed’s standard lending rate It will still be steep riseas it struggles to cool down demand in The United States to bring consumer costs down.
families in The world is bigger economy The competition was done with exorbitant prices, with Conditions worsened due to higher food and energy prices after Russia invasion of Ukraine.
to borrow more expensiveThe Federal Reserve raised interest rates six times this is yearincluding four extended increments of 0.75 points, making rate to between 3.75% and 4%.
We think theatre set for A (half said Oren Clashkin “Pip) hike this month” of Oxford Economics, as interest rate sensitive sectors like Pulley housing and inflation show Signs of mitigation.
The decision will be announced After a two-day meeting of The policy- Appointment of the Federal Open Market Committee (FOMC) as of Tuesday.
Policymakers are watching closely on pay growthGiven the concerns higher Salaries will add to inflationary pressures.
Primary concern for The Fed here is really paying for growth,” said Martin Werm of Moody’s Analytics, adding that the Fed is unlikely to back down policy So there is consistent development on This front.
“It doesn’t necessarily mean that she will continue to hike forever, but it does mean that rate will increase for a bit and…stay high throughout next year, Turem told AFP.
with higher standard rateyou will become more expensive to borrow money for big-ticket Purchases such as cars and property or to expand business.
‘Signs of Stress’
Despite the power of the Federal Reserve movesThe consumer inflation rate was 7.7%. in October while job gains remained strong, jittery markets on Worries that the mainframe bank It would prolong its aggressiveness campaign.
Strong functions market rising Wages and a strong family balance sheet…are key Regions of support” for demand, said economist James Knightley of a job.
Family wealth has increased by $30 trillion since start of The pandemic, he pointed out, allowing consumers to dip into their savings like cost of Living rose.
“However, we are also greater vision use of credit and consumer credit cards To finance spending, which may indicate some signs of stress and that the family’s efforts to maintain it standard of “Living is starting to get exhausting,” Knightley told AFP.
smaller recession
Fed Chairman Jerome Powell warned that cash policy probably remain taut “for some time,” even if it’s time to loosen up pace of rate Great heights may come soon as such in Dec.
Timing of This moderation is less important than the questions of how Many more Officials need To raise prices, and how For a long time should keep policy restricted, is added in Speech.
While many economists believe there are about 50-50 chance of Werm said an economic recession would likely mean a small contraction in Gross domestic product.
“What we don’t necessarily expect is a file big financial crisis like 2008 … the big sectors of The economy still in Nice good shape,” He said.
United State economy It rebounded strongly after Covid-19, driving up income, while the lockdown extended in earnings for American companies as well – accounting for Resilience was seen despite the Fed’s sharp tightening.
Knightley of ING said policymakers maintain the mindset that risk of Doing less is more than that of do a lot.
“They will tolerate a recession sure defeat inflation added.
