Fed Holds Interest Rates Steady For Second Meeting In A Row—As Rate Hikes Weigh On Markets
The Federal Reserve again decided to keep interest rates at the same level, the central bank announced Wednesday, though rates remain at their highest level since 2001, causing sweeping effects on the economy.
The Federal Reserve again decided to keep interest rates at the same level, the central bank announced Wednesday, though rates remain at their highest level since 2001, causing sweeping effects on the economy.
The policy-setting Federal Open Markets Committee decided to keep the target federal funds rate, which nominally only determines overnight lending costs between banks but heavily influences all borrowing rates, steady at 5.25% to 5.5%.
It’s the first time the panel has decided not to raise rates in consecutive meetings since the beginning of 2022, when the Fed began its dramatic shift away from near-zero rates.
The Fed indicated it will continue to evaluate the “extent of additional policy firming,” declining to commit that the current tightening cycle is over as bullish investors cling to hopes rates will decline significantly in 2024 and beyond.
Leading Indicators Continue to Signal a Recession
A gauge of future economic activity declined in October, after falling in September, on worsening consumer expectations, the Conference Board reported on Monday.
China Industrial Production Beats Expectations in October, Retail Sales Rise
Chinese industrial production grew more than expected in October, while retail sales also rose past expectations.
Eurozone Retail Sales Declined 2.9% YoY in September vs. -3.2% Expected
According to the official data released by Eurostat on Wednesday, November 8, Eurozone’s Retail Sales dropped 0.3% MoM in September as against a 0.7% fall in August.
