Posted on 10/12/2023 4:07:42 AM PDT by CFW
Newly released records of discussions among Federal Reserve policymakers show that they expect one more interest rate hike and then they'll hold rates high for "some time," although a recent surge in long-term Treasury yields may have changed that calculus.
Minutes from the central bank's most recent September meeting of the rate-setting Federal Open Market Committee (FOMC), released on Oct. 11, show that a "majority" of officials believe that one more rate hike "would likely be appropriate" to get inflation closer to the Fed's 2 percent target. At that meeting, FOMC members opted to keep rates unchanged within a range of 5.25-5.5 percent—the highest level in 22 years.
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Bond Surge in Focus Since late July, the yield on the benchmark 10-year Treasury note jumped from around 4 percent to around 4.8 percent—a 16-year high. Mortgage rates, which are closely tied to the 10-year Treasury yield, have risen to 7.5 percent, a 23-year high, according to Freddie Mac.
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(Excerpt) Read more at theepochtimes.com ...
Fed Minutes Show One More Rate Hike, Then Higher Interest Rates for 'Some Time'
I'm not sure where we go from here. The dollar is dropping, the stock market is going up (melting up?). All economic indicators are inflationary--no matter what the economic "experts" tell you.
Those "experts" also practically ignore the comments by Fed committee members who indicate that not only will there not be a reversal in interest rates, but another rate hike may be on the table by the end of the year or early next year. Hubby and I read the FOMC minutes and then joke as we then notice how the financial news sites spin and twist the report to support the narrative that soon there will be "more free money"! Any day now, the FEDs will pivot!
Gold rose to around $1,880 an ounce on Thursday, hitting its highest levels in two weeks as the dollar and Treasury yields weakened further on growing expectations that the US Federal Reserve is done hiking interest rates. Those moves came even after minutes of the Fed’s last meeting showed policymakers said rates should remain elevated for “some time” to bring inflation down, while US producer inflation data came in hotter than anticipated in September.
Investors now look ahead to US consumer inflation data on Thursday for further guidance. Heightened geopolitical uncertainties in the Middle East as the Israel-Hamas war rages on also boosted safe-haven demand for gold.
Anyone who thinks rates will go down anytime soon is delusional.
Rates will rise until excess credit is extracted from the market. Only after that will prices fall.
Where’s my 35% increase in Social Security to cover Biden’s inflation?
Hahaha just kidding 🤣😂
C’mon SLow Joe! Carter had interest rates up at 18%
You can beat that- you’re much stupider
Hubby and I read the FOMC minutes and then joke as we then notice how the financial news sites spin and twist the report to support the narrative that soon there will be “more free money”! Any day now, the FEDs will pivot!
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Cheap money advocates are very stubborn in their beliefs.
No matter how many times Powell hits them in the head with a baseball bat, their position stays unchanged.
“Please Sir, May I Have Some More.”
Mortgage rates December 2019 = 2.6%
Mortgage rates October 2023 = 6.8%
So True!
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US Stock Futures Point to Higher Open Ahead CPI Data
US stock futures rose on Thursday, as investors looked ahead to the release of the CPI report, which is anticipated to provide further evidence of a gradual easing of inflationary pressures. In pre-market trading, Ford Motor fell more than 2% following news that UAW members had initiated a strike at its largest plant. In terms of earnings reports, Domino's Pizza tumbled nearly 4% due to disappointing results while Delta Air Lines rose by over 2% on the back of better-than-expected earnings. On Wednesday, the S&P 500 extended gains for the fourth consecutive session, its longest winning streak since August. Also, the Dow Jones added 0.2% and the Nasdaq climbed 0.7%.
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CPI numbers will be released in about 10 minutes. We shall see if the numbers match the headlines, if last month's numbers are revised, whether or not they are all "b.s.", and if they should be even trusted.
The US inflation rate held steady at 3.7% in September 2023, defying market expectations of a slight decrease to 3.6%. Meanwhile, the core CPI, which excludes volatile food and energy prices, slowed to 4.1% year-on-year, marking its lowest reading since September 2021. On a monthly basis, consumer prices advanced by 0.4%, easing from a 0.6% gain in August but beating market expectations of 0.3%, while the core rate remained unchanged at 0.3%.
The annual core consumer price inflation rate in the United States, which excludes volatile items such as food and energy, fell to 4.1% in September 2023, the lowest since September 2021, down from 4.3% in the prior month. matching market forecasts. On a monthly basis, core consumer prices rose by 0.3% from a month earlier in September, the same pace as in August, also in line with market estimates
Consumer Price Index CPI in the United States increased to 307.79 points in September from 307.03 points in August of 2023
Initial Jobless Claims in the United States remained unchanged at 209 thousand in the week ending October 7 of 2023 from 209 thousand in the previous week.
Jobless Claims 4-week Average in the United States decreased to 206.25 Thousand in October 7 from 209.25 Thousand in the previous week.
Continuing Jobless Claims in the United States increased to 1702 thousand in the week ending September 30 of 2023 from 1672 thousand in the previous week
“The annual core consumer price inflation rate in the United States, which excludes volatile items such as food and energy, fell to 4.1% in September 2023, the lowest since September 2021, down from 4.3% in the prior month. matching market forecasts. The shelter index, accounting for over 70% of the total increase in all items less food and energy, rose 7.2% in September, down from August’s 7.3%. On a monthly basis, core consumer prices rose by 0.3% from a month earlier in September, the same pace as in August, also in line with market estimates”
Rates will reman high for some time.
Who gets the interest? Government and banks.
We the People get nothing but the higher bills.
High interest rates do not stop inflation. They merely cause higher prices while artificially driving down supply. Demand remains the same so higher prices (inflation) results.
Those who do not understand the law of Supply & Demand are easily fooled into thinking higher interest rates benefit them by supposedly stopping inflation.
The number of Americans filing for unemployment benefits was unchanged from the prior week at 209,000 on the week ending October 7th, below estimates of 210,000 and remaining close to the seven-month low of 202,000 from September. In the meantime, continuing claims rose by 30,000 to 1,702,000 on the previous week, above market estimates of 1,680,000 but relatively close to this year’s lows from the third quarter. The data added to evidence that the labor market remains at historically tight levels, pointing to added resilience to the Federal Reserve’s aggressive tightening cycle and adding leeway for rates to remain higher for longer.
Continuing Jobless Claims in the United States increased to 1702 thousand in the week ending September 30 of 2023 from 1672 thousand in the previous week
Jobless Claims 4-week Average in the United States decreased to 206.25 Thousand in October 7 from 209.25 Thousand in the previous week.
The Fed has very little time left so don’t worry too much about it.
$1880 is not a big climb. It should be well over $2,000 by now. Its totally manipulated.
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