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Hawkish Fed signals it may have to raise rates sooner to fight inflation [View all]
This is the main reason why the stock market tumbled today, Jan 5 -
Total U.S. Stock Market Index down 2.31%, S&P 500 down 1.94%,
At 12:30 A.M. ET Jan 6, S&P 500 futures down 0.45%
Hawkish Fed signals it may have to raise rates sooner to fight inflation, Reuters, 1/5/22
https://finance.yahoo.com/news/fed-may-hike-rates-faster-191254342.html
WASHINGTON (Reuters) - A "very tight" job market and unabated inflation might require the Federal Reserve to raise interest rates sooner than expected and begin reducing its overall asset holdings as a second brake on the economy, U.S. central bank policymakers said in their meeting last month.
In a document released on Wednesday that markets took as decidedly hawkish, the minutes from the Dec. 14-15 policy meeting showed Fed officials uniformly concerned about the pace of price increases that promised to persist, alongside global supply bottlenecks "well into" 2022.
... A "very tight" job market and unabated inflation might require the Federal Reserve to raise interest rates sooner than expected and begin reducing its overall asset holdings as a second brake on the economy, U.S. central bank policymakers said in their meeting last month.
... Those concerns, at least as of mid-December, even appeared to outweigh the risks potentially posed by the fast-surging Omicron variant of the coronavirus, seen by some Fed officials as likely adding further to inflation pressures but not "fundamentally altering the path of economic recovery in the United States."
https://finance.yahoo.com/news/fed-may-hike-rates-faster-191254342.html
WASHINGTON (Reuters) - A "very tight" job market and unabated inflation might require the Federal Reserve to raise interest rates sooner than expected and begin reducing its overall asset holdings as a second brake on the economy, U.S. central bank policymakers said in their meeting last month.
In a document released on Wednesday that markets took as decidedly hawkish, the minutes from the Dec. 14-15 policy meeting showed Fed officials uniformly concerned about the pace of price increases that promised to persist, alongside global supply bottlenecks "well into" 2022.
... A "very tight" job market and unabated inflation might require the Federal Reserve to raise interest rates sooner than expected and begin reducing its overall asset holdings as a second brake on the economy, U.S. central bank policymakers said in their meeting last month.
... Those concerns, at least as of mid-December, even appeared to outweigh the risks potentially posed by the fast-surging Omicron variant of the coronavirus, seen by some Fed officials as likely adding further to inflation pressures but not "fundamentally altering the path of economic recovery in the United States."
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Hawkish Fed signals it may have to raise rates sooner to fight inflation [View all]
progree
Jan 2022
OP
that's correct, except that the economy is already larger than it was before covid hit.
unblock
Jan 2022
#15
The 2 years combined come to a 0.89%/year growth rate (compare to 2.46%/yr pre-pandemic)
progree
Jan 2022
#14
Actually I was thinking of adding to my #14 that I do the same thing for inflation --
progree
Jan 2022
#17
It's just really hard to justify near-zero rates when the economy is up around 5% for the year.
unblock
Jan 2022
#6
There was only one quarter of decline in GDP, Q2 2020, which was followed in Q3 by PLUS 33.8%
progree
Jan 2022
#24
Aww, the very selective quote technique. And no, "decline" and "slowing" are not the same
progree
Jan 2022
#29