Fed holds rates at 3.75%-4% with two dissents for a hike; next day, GDP grows 3.4% and inflation runs at 3.6%
CNBC explains the dissents and the December outlook, and the BEA release gives the growth figures straight from the source.
The Federal Reserve kept its benchmark rate in a 3.75% to 4% range on October 28, after raising it a quarter point in September. Its statement said "Inflation remains elevated" and that more information will help it decide its next step. Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of a quarter-point hike; CNBC reports it was Cook's first dissent since joining the Fed in 2022. Futures pricing points to a strong possibility of a hike in December.
On October 29 the Bureau of Economic Analysis estimated that real GDP grew at a 3.4% annual rate in the third quarter, up from 2.2% in the second, driven by investment, consumer spending and government spending. The PCE price index rose 0.5% in September, for 3.6% annual inflation; core PCE was 3.1%. Weekly jobless claims fell to 194,000.
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Federal Open Market Committee
After exploring Fed holds rates steady despite concerns over inflation, to learn who votes and how, read Federal Open Market Committee.
Wikipedia explains that the FOMC is the Federal Reserve committee that oversees open market operations and makes the key decisions about US interest rates and the money supply.
Wikipedia · Wade · 5 min
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Personal consumption expenditures price index
After exploring Third-quarter U.S. GDP increases a better-than-expected 3.4% as September inflation accelerates, for the inflation measure the Fed watches most, try Personal consumption expenditures price index.
Wikipedia describes the PCE price index, published by the Bureau of Economic Analysis, as a measure of the prices people pay for goods and services, and notes it is the inflation gauge the FOMC uses.
Wikipedia · Wade · 5 min
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