Fed Officials Set to Continue Rate Pause Without Declaring End to Hikes

Fed Officials Set to Continue Rate Pause Without Declaring End to Hikes


(Bloomberg) — Federal ⁣Reserve officials look set to hold interest rates ⁣steady‌ for the ‌second time in a row next month — but they’re far from calling an end to their tightening campaign.

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Policymakers across the hawk-dove spectrum have signaled in recent days that they’re inclined to‌ forgo ‍a rate hike at their ‌Oct. 31-Nov. 1⁢ meeting following a run-up in bond yields ‍that has tightened financial conditions.

But with data on the labor market and inflation showing an ​economy ⁤that’s still humming,​ the Federal Open‌ Market Committee is unlikely to take further rate increases off the table.

“It’s too soon to declare ​victory,” Minneapolis Fed President Neel Kashkari, who has a rotating vote on rates this year,‍ said Tuesday during a town hall event in North Dakota.

Minutes from​ the ‌Fed’s September gathering released Wednesday showed policymakers see a slew ​of risks that could push inflation higher than they ⁤expect, including shocks to food prices, a…

2023-10-14⁤ 08:00:00
Article from finance.yahoo.com
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