Fed's Powell: Isolated banking problems if left unaddressed can threaten banking system
FED'S POWELL: ISOLATED BANKING PROBLEMS IF LEFT UNADDRESSED CAN THREATEN BANKING SYSTEM— PiQ (@PriapusIQ) March 22, 2023
POWELL: ALL DEPOSITORS' SAVINGS ARE SAFE— *Walter Bloomberg (@DeItaone) March 22, 2023
FED'S POWELL: OUR LENDING PROGRAMS ARE EFFECTIVELY MEETING BANKS NEEDS.— Breaking Market News (@financialjuice) March 22, 2023
FED'S POWELL: OUR LENDING PROGRAMS SHOWS AMPLE LIQUIDITY IS AVAILABLE.— Breaking Market News (@financialjuice) March 22, 2023
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The Federal Reserve System is the central bank of the United States. It performs five general functions to promote the effective operation of the U.S. economy and, more generally, ...
In conjunction with the Federal Open Market Committee (FOMC) meeting held on March 21Ė22, 2023, meeting participants submitted their projections of the most likely outcomes for real gross domestic product (GDP) growth, the unemployment rate, and inflation for each year from 2023 to 2025 and over the longer run. Each participantís projections were based on information available at the time of the meeting, together with her or his assessment of appropriate monetary policyóincluding a path for the federal funds rate and its longer-run valueóand assumptions about other factors likely to affect economic outcomes. The longer-run projections represent each participantís assessment of the value to which each variable would be expected to converge, over time, under appropriate monetary policy and in the absence of further shocks to the economy. ďAppropriate monetary policyĒ is defined as the future path of policy that each participant deems most likely to foster outcomes for economic activity and inflation that best satisfy his or her individual interpretation of the statutory mandate to promote maximum employment and price stability. post at 2:00pm: Fed's Median View of Fed Funds Rate at End-2023 5.1% vs 5.1% in December Projections Fed's Median View of Fed Funds Rate at End-2024 4.3% (Prev 4.1%) Fed's Median View of Fed Funds Rate at End-2025 3.1% (Prev 3.1%) post at 2:01pm: Fed projections show there will be one more 25 basis point hike this year and 75 basis point cuts in 2024.
Recent indicators point to modest growth in spending and production. Job gains have picked up in recent months and are running at a robust pace; the unemployment rate has remained low. Inflation remains elevated. The U.S. banking system is sound and resilient. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 4-3/4 to 5 percent. The Committee will closely monitor incoming information and assess the implications for monetary policy. The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. In determining the extent of future increases in the target range, the Committee will take into post at 2:00pm: Fed Hikes By 25bps to 5.00% Est. 5.00% post at 2:00pm: Fed: 'Some Additional Policy Firming May Be Appropriate,' Deletes Reference to Ongoing Increases post at 2:01pm: Fed hikes 25bps: statement compare >> https://t.co/fHKTrx6lK3
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post at 2:33pm: Fedís Powell: Inflation Remains Too High - Labor Market Still Too Tight - Remain Strongly Committed to Bringing Inflation to 2% - Consumer Spending Appears to Have Picked Up This Quarter Although Some of That Is Weather Related - Activity in Housing Remains Weak post at 2:34pm: Fedís Powell: Policymakers Generally Expect Subdued Growth To Continue - and Almost All on FOMC Sees Risks on Growth As Weighted to the Downside - Wage Growth Has Shown Some Signs of Easing - But Demand Still Outstrips Supply post at 2:35pm: Fedís Powell: We Expect That to Come Into Better Balance Over Time - Inflation Remains Well Above Our Goal - Strength of Recent Inflation Readings Shows Pressures Continue to Run High - Process of Getting Inflation Back Down Has a Long Way to Go - It Will Be Bumpy post at 2:37pm: Fedís Powell: Longer-Term Inflation Expectations Remain Well Anchored - Since Last Meeting Economic Data Has Come In Stronger Than Expected - But We Think Recent Banking Events Will Result in Tighter Credit Conditions - That Would Impact the Economy and How We Need to Respond post at 2:38pm: FED'S POWELL: WE WILL CLOSELY MONITOR INCOMING DATA, AND THE ACTUAL AND EXPECTED EFFECTS OF TIGHTER CREDIT CONDITIONS. WE WILL USE THAT AS BASIS FOR DECISIONS.
post at 2:38pm: FED'S POWELL: WILL MAKE MEETING- BY-MEETING DECISIONS BASED ON TOTALITY OF DATA post at 2:38pm: Fedís Powell: We Will Use That As Basis for Decisions - Projections Are Not a Plan, Path Will Adjust As Appropriate - Path of Policy Will Adjust as Appropriate, and We'll Make Decisions Meeting by Meeting - Reducing Inflation is Likely to Require Period of Below Trend Growth post at 2:40pm: Fed's Powell: Banking System is Sound and Resilient - We Are Undertaking Thorough Review to See if We Need to Strengthen Regulation - Considered Banking System Issues in Days Running Up to Meeting - Intermeeting Data on Jobs and Inflation Came in Stronger Than Expected post at 2:41pm: Fed's Powell: A Couple of Weeks Ago We Thought We Would Have to Raise Terminal Rate, Before Banking Stresses - Important to Sustain Confidence with Actions and Words - Last Two Weeks Will Cause a Weigh on Demand and Inflation post at 2:42pm: FED'S POWELL: NEED FOR FURTHER HIKES WILL BE BASED ON ACTUAL AND EXPECTED EFFECTS OF CREDIT TIGHTENING IN PARTICULAR
post at 2:42pm: Fedís Powell: In Principle Can Think of Banking Strain as Equivalent to a Rate Hike - Need for Further Hikes Will Be Based on Actual and Expected Effects of Credit Tightening In Particular - Focus on the Words 'May' and 'Some' as Opposed to 'Ongoing' Increases post at 2:44pm: Fed's Powell: Our Statement Was Trying to Reflect Uncertainty in Outlook From Banking Strains - Possible Tightening in Credit Conditions May Mean Monetary Tightening Has Less Work to Do - At Meeting I Heard a Significant Number of People Anticipating Tightening Credit Conditions post at 2:46pm: FED'S POWELL: TIGHTER CREDIT CONDITIONS WERE INCLUDED IN OUR PROJECTIONS. post at 2:46pm: FED'S POWELL: MOST OF THE INTERMEETING PERIOD POINTED TO HIGHER RATES. post at 2:47pm: FED'S POWELL: RATE HIKES ARE WELL TELEGRAPHED, MANY BANKS ARE ABLE TO HANDLE THIS.