PT Solid Gold Berjangka | Fed Sees Rates Staying High for Some Time With Cuts Eyed in ’24

01:33 04 January in Fiscal & Monetary, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Federal Reserve The Fed PT SGB Solid Group Solid Gold Berjangka SG Berjangka

Solid Gold Berjangka | The passage you provided discusses the Federal Reserve’s stance on monetary policy based on the minutes of the December 12-13 Federal Open Market Committee (FOMC) meeting. Here are some key points:

  1. Restrictive Stance: The Federal Reserve policymakers agreed that it would be appropriate to maintain a restrictive stance on monetary policy “for some time.” A restrictive stance typically involves higher interest rates to cool down an overheating economy and control inflation.
  2. Peak Rate: Participants in the meeting believed that the policy rate was likely at or near its peak for the current tightening cycle. This suggests that the Federal Reserve had reached a point where it might consider lowering interest rates in the future.
  3. Inflation Outlook: There was increased optimism among participants regarding the path of inflation, with “clear progress” noted. This optimism might be a result of positive developments in the economy that contribute to the Fed’s confidence in addressing inflation concerns.
  4. Commitment to a Restrictive Stance: Officials reaffirmed their commitment to keeping policy at a restrictive stance until inflation was clearly moving down sustainably. This indicates a cautious approach, ensuring that any shift in policy aligns with a sustained improvement in the inflationary outlook.
  5. Possibility of Rate Cuts in 2024: Despite the current restrictive stance, the minutes suggest that there’s a willingness among policymakers to cut the benchmark lending rate in 2024. This would be contingent on continued progress in addressing inflation, though the timing of such a move remained uncertain.
  6. Projections for Lower Interest Rates: Almost all participants, in their submitted projections, indicated that their baseline projections implied a lower target range for the federal funds rate by the end of 2024. This further underscores the possibility of a shift towards lower interest rates in the coming year.

It’s important to note that economic conditions are dynamic, and the Federal Reserve’s monetary policy decisions are influenced by various factors such as inflation, employment, and overall economic growth. The information provided in the passage reflects the sentiments and decisions of the Federal Reserve as of the December 2023 meeting.