11/26/2023 0 Comments Next fed meetingThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party. However, GDP growth recently has rebounded after a few quarters of negative growth, which may have lowered the Fed's confidence about a further drop in inflation. Notably, gross domestic product (GDP) growth since the Fed signaled policy tightening has averaged 1.1%, compared with a pre-pandemic average of 2.4%. Powell repeated previous comments that the Fed is looking for a softer labor market and below-trend growth over a period of time. With the Fed data-dependent, we believe the key metrics to watch for signs that inflation is coming under control are economic growth and inflation. Nonetheless, Powell indicated that the Fed was prepared to be "patient and resolute" in reaching its inflation goal. After the last FOMC meeting in June, Federal Reserve Chair Jerome Powell indicated that the committee believed it was "near its destination." Based on his comments after this meeting, the Fed doesn't seem clear on how far away it is from reaching its goal but does believe policy is currently "restrictive," or tight enough to slow growth and inflation. The big question facing the markets is: Does this hike represent the peak in the fed funds rate for the cycle, or are there more rate hikes ahead? That question remains unanswered. Wealth and Investment Management Solutions.Get Automated Investing with Professional Guidance.Meet the experts behind Schwab's investing insights.Environmental, Social and Governance (ESG) Investing.Bond Funds, Bond ETFs, and Preferred Securities.ADRs, Foreign Ordinaries & Canadian Stocks.Environmental, Social and Governance (ESG) ETFs.Environmental, Social and Governance (ESG) Mutual Funds.Benefits and Considerations of Mutual Funds.
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