#Feds fund rate next meeting update#

An update on second-quarter gross domestic product showed the economy contracted less than initially thought from April through June. The Fed gets two more key inflation reports and more jobs data before the September meeting, including the last reading of the personal consumption expenditures price index on Friday, and the August jobs report in a little over a week. In an interview with the Wall Street Journal, Atlanta Fed president Raphael Bostic said “at this point, I’d toss a coin” to decide between a half-point versus a three-quarter-point rate increase. He will have longer-term expectations to manage about how high the Fed thinks rates may need to rise, how long they will need to stay there, and how the Fed might react if the economy weakens more than expected.īut there is also shorter-term focus on what the Fed will do when it meets in just under four weeks. The interviews with George were broadcast ahead of the kickoff Thursday night of the Kansas City Fed’s annual research symposium here, held as a live event for the first time since 2019.įed chair Jerome Powell addresses the conference on Friday in remarks expected to summarize where he feels the Fed stands in its fight to control the worst outbreak of inflation in 40 years. The last two increases were in three-quarter point increments, and Fed officials must now decide whether to sustain that pace or reduce it.

The Fed has raised rates at each of its meetings beginning in March, with the federal funds rate currently set in a range between 2.25 per cent and 2.5 per cent. “Whether it’s 50 or 75 I can’t say right now,” Harker said, adding that in the context of a historical record where quarter-point rate hikes have been the norm, even a half-point hike is a “substantial” move. “I am not in the camp … of taking rates up and then way down.”Īs for next month’s decision, he said, he’ll need to see what the next inflation report shows. The Federal Open Market Committee (FOMC) meets eight times a year to determine the federal funds target rate. The fed funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis. “I’d like to see us get to, say, above 3.4 per cent – that was the last median in the SEP (Summary of Economic Projections) – and then maybe sit for a while,” Harker said. Shows the daily level of the federal funds rate back to 1954. Philadelphia Fed President Patrick Harker had a similar message in comments to CNBC, though he appeared to see policy rates topping out a bit lower than George. I don’t think that’s out of the question … You won’t know that, I think, until you begin to watch the data signs.” “I think we will have to hold – it could be over 4 per cent. In an interview with Bloomberg, she said the target federal funds rate may ultimately need to exceed 4 per cent to get the desired impact, and may need to remain high for some time. However, she said, “our charge is pretty clear, to bring inflation back to our target” by raising interest rates high enough to fix what she called a “fundamental imbalance” between the demand for goods and services and the economy’s ability to produce or import them.

Feds fund rate next meeting