The Federal Reserve said in a statement:
Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks.
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
As it stands, it would seem three rate cuts are still very much a ‘go’ for later this year, despite widening speculation from many that the Fed would be forced to cease any talks of cuts at all this year, with some claiming that the Fed would actually have to raise rates some more.
In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.
We believe that our policy rate is likely at its peak for this time in the cycle and if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.
The economic outlook is uncertain, however, and we remain highly attentive to inflation risks. We are prepared to maintain the current target range for longer if appropriate.
Jerome Powell said during his speech
Brian from ClearValue Tax basically summarized in his analysis that the Federal Reserve is looking for any reason to justify cutting rates several times at least this year.
AUTHOR COMMENTARY
The people denouncing rate cuts, and even some going so far as to suggest rate hikes, are missing the bigger picture. Conventional wisdom would say that rate cuts are not coming, but we understand that the Fed’s claims of being “data dependent” are just nonsense. Everything is very calculated and precisely planned out far in advance, and the Feds are only looking to maneuver this in a very calculated manner that only benefits them and their buddies, while continuing to make the people much, much poorer.
I strongly believe rate cuts are coming by June, perhaps July at the latest. With this year being a presidential [s]election cycle rate are going to be cut. It’s all a big game. Rate cuts will of course cause inflation rates to rocket back up.
The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 22:7
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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