Thom Tillis of North Carolina, on Wednesday accused Powell of having taken too long to raise rates, saying the Fed’s hikes “are long overdue” and that its benchmark short-term rate should go much higher. This week, Goldman Sachs estimated the likelihood of a recession at 30% over the next year and at 48% over the next two years.Ī senior Republican on the Banking Committee, Sen. That would be its highest level in 15 years.Ĭoncerns are growing that the Fed will end up tightening credit so much as to cause a recession. With inflation at a 40-year high, the Fed’s policymakers also forecast a more accelerated pace of rate hikes this year and next than they had predicted three months ago, with its key rate reaching 3.8% by the end of 2023. Powell’s testimony Wednesday comes exactly a week after the Fed announced its three-quarters-of-a-point increase, its biggest hike in nearly three decades, to a range of 1.5% to 1.75%. The Fed’s accelerating pace of rate increases – it started with a quarter-point hike in its key short-term rate in March, then a half-point increase in May, then three-quarters of a point last week – has alarmed investors and led to sharp declines in the financial markets. Its decision-making will be based on “the incoming data and the evolving outlook for the economy,” Powell said to the Senate Banking Committee, which he is addressing as part of the Fed’s semiannual policy report to Congress.
Powell also said the pace of future rate hikes will depend on whether – and how quickly – inflation starts to decline, something the Fed will assess on a “meeting by meeting” basis. WASHINGTON (AP) – Federal Reserve Chair Jerome Powell on Wednesday underscored the Fed’s determination to raise interest rates high enough to slow inflation, a commitment that has fanned concerns that the central bank’s fight against surging prices could tip the economy into recession. SPECIALTIES, DESIGNATIONS & ENDORSEMENTS.Economists forecast a 0.35% monthly decrease, following a 0.3% drop in April.Īnd ON Semiconductor are set to join the S&P 500 index after the close of trading. The Conference Board releases its Leading Economic Index for May. Consensus estimate is for a seasonally adjusted annual rate of 1.720 million housing starts, compared with 1.724 housing starts in April. The Census Bureau releases new residential construction data for May. Kroger, Jabil, and Adobe host quarterly earnings conference calls with investors. Import prices are expected to rise 1.1% in May compared with being flat in April.Ī Food and Drug Administration panel reviews data and will recommend whetherĬovid-19 vaccines for children under 5 should receive authorization. The BLS releases its Export Price index, which is believed to have risen 0.8% in May from a 0.6% in April. Excluding autos, retail sales are seen rising 0.7% compared with a 0.6% rise in April.
Expectations are for a 0.15% seasonally adjusted monthly increase, after a 0.9% rise in April. The Census Bureau reports retail-sales data for May. Economists are looking for a 68 reading, compared with a reading of 69 in May. The National Association of Home Builders releases the NAHB/Wells Fargo Housing Market Index for June. Holds its fourth-quarter earnings conference call. The Federal Reserve is widely expected to raise its benchmark interest rate by 50 basis points. The Federal Open Market Committee concludes its two-day session. The core PPI, which excludes volatile food and energy prices, is expected to rise 8.7%, compared with an 8.8% gain previously. Consensus estimate is for a 10.8% year-over-year jump, after an 11% spike in April. The Bureau of Labor Statistics reports the producer price index for May. Kicks off a two-day US Financials, Payments & CRE conference. The New York Times hosts an investor day at its headquarters in New York. Analysts are looking for lower earnings per share of $1.37 versus $1.54 a year ago, on higher revenue of $11.6 billion versus $11.2 billion a year ago. Excluding food and energy components, the core PPI is seen rising 0.6% last month and 8.7% from a year earlier. It is expected to have climbed 0.7% in May, for a 10.8% year-over-year increase. That will give economists and investors greater insight into the committee’s possible next moves.Ĭompanies reporting earnings this week will includeĬompany also hosts an investor day on Monday andĮconomic data out this week will include the Bureau of Labor Statistics’ Producer Price Index on Tuesday.
Feds next meeting update#
FOMC officials will also update their projections for economic growth, the unemployment rate, inflation, and future interest rates on Wednesday.