Markets Soar As Fed Signals No Rate Increases Until Next Year

spot_img

The Federal Open Market Committee left its benchmarked interest rates at near zero on Wednesday though it indicated it intended to reduce monthly asset bond purchases soon.

According to the FOMC’s post meeting statement, “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may be warranted.”

- Advertisement -

Though the Fed did not give a definite indication of when it would reduce its monthly bond buying asset purchase program, though the committee did say in its statement that it could start its so-called “taper” before its next meeting on Nov 2-3.

In addition, the Fed indicated that rate hikes could be coming next year amid its higher-than-expectated estimates for inflation.

- Advertisement -

Though it cut its economic outlook for this year, the Committee predicts that GDP will gain just 5.9% this year, compared with its June forecast for 7% growth. Core inflation (minus food and energy) for the year is expected to increase 3.7% (up from 3% in June.) Nonetheless, the Committee anticipates that inflation pressures will dissipate in 2022, with officials predicting a 2.3% increase in 2022 and between 2.1-2.2% in 2023.

Including food and energy, inflation will likely be at 4.2% according to the Fed’s predictions.

The dow soared on the news, gaining 38O points as the S&P jumper 33 points.

 

SUBSCRIBE TO MY FREE NEWSLETTER

Liberals want to destroy America. Their radical agenda will pack our courts, change the voting laws, and take away our constitutional freedoms. That's why is important to Join My Newsletter and get the news directly from me.

Related Articles

Stay Connected

137,091FansLike
692,135FollowersFollow
28,025SubscribersSubscribe
spot_img

Latest Articles

TRISH REGAN NEWSLETTER

Liberals want to destroy America. Their radical agenda will pack our courts, change the voting laws, and take away our constitutional freedoms. That's why is important to Join My Newsletter and get the news directly from me.

- Advertisement -spot_img
Get The Full Story From Me

Conservative Media is under attack from Big Tech. Please join my 100% FREE NEWSLETTER.

  • Trish Intel
  • Trish Regan
  • https://chrt.fm/track/23284G/traffic.omny.fm/d/clips/5e27a451-e6e6-4c51-aa03-a7370003783c/d93acfd6-a015-4c06-8697-ad42013d1e7d/49545bfe-628b-4a13-ba21-adc201866d9e/audio.mp3