PREVIOUS TRADING DAY EVENTS 07 August 2023
According to the latest announcement, annual inflation figures were reported lower, at 3. The market expected an increase for the next report to 3.30. That is actually surprising to me. Rate hikes have proved that they have a great impact on inflation. The central bank was expected to pause for now but according to the recent Fed statements, another hike is on the way.
According to the Federal Reserve Governor Michelle Bowman, the U.S. central bank might raise rates further
I supported raising the federal funds rate at our July meeting, and I expect that additional increases will likely be needed to lower inflation to the FOMCs goal, Bowman said, referring to the Federal Open Market Committee in remarks prepared for a central bank Fed Listens event in Atlanta.
Of course, any decisions will depend on the incoming economic data.
I will be looking for evidence that inflation is on a consistent and meaningful downward path as I consider whether further increases in the federal funds rate will be needed, and how long the federal funds rate will need to remain at a sufficiently restrictive level, she said.
The Feds July rate hike brought the federal funds rate to a range of 5.25 to 5.5.
We have made progress in lowering inflation over the past year, but inflation is still significantly above the FOMCs 2 target.. Bowman said.
Source httpswww.bnnbloomberg.cafedsbowmanagainsaysmorehikesmaybeneededtolowerinflation1.1955946…