the Federal Reserve raised interest rates this past Wednesday , and of course this is not good for the economy , this hurts the economy it also increases the risk of a recession ,so the Federal Reserve is saying that they may decide to raise interest rates even higher .
the highlights of their press conference so you can see everything for yourself this includes questions about whether interest rates will go higher what they plan to do at their next meeting the risk of a recession and when they plan on cutting interest rates .
give you my inputs so here's what happened the Federal Reserve they had their closed door meeting they decided to raise interest rates and then they held their press conference the press conference was hosted by chair of the Federal Reserve Jerome Powell it's a few minutes of prepared remarks .
tight credit conditions have tightened inflation has come down , but it's still above their two percent goal and he says that they're going to analyze the incoming data to see if more interest rate increases are necessary okay .
I'm about to show you the reporter asks will the Federal Reserve raise interest rates further and if so then when Paul responds by saying that that decision has not yet been made Paul says that they're going to take a meeting by meeting and they're going to assess whether it's necessary to raise interest rates higher or not,
I think a couple times in your opening remarks talked about this language in determining the extent of additional policy farming that may be appropriate should we take that to mean that additional hikes are likely on the way,
and should we also believe that all future meetings say September and
November are live or are you in a every other meeting mood ,thank you so we haven't made a decision to go to every other meeting it's not something we've looked at we're going to be going meeting by meeting and as we go into each meeting we're going to be asking ourselves the same questions so we haven't made any decisions about about
any future meetings including the pace at which we'd consider hiking but we're going to be assessing the need for further tightening that may be appropriate you read the language to return inflation to two percent over time .
Paul says that at their next meeting which is going to take place on September 20th the Federal Reserve will raise interest rates if it is warranted if it's not then they won't that decision it's going to depend on the economic data that comes in from now until the next meeting and that data it's going to include two more jobs,
reports two more inflation reports and an ECI reports so take a look I will also say since we're talking about it between now and the September meeting we get two more job reports two more CPI reports I think we have an ECI report coming later this week which is employment compensation index and lots
of data on economic activity all of that information is going to inform our decision as we go into that meeting I would say it is certainly possible that we would raise funds again at the September meeting if the data warranted and I would also say it's possible that we would choose to Hold Steady at that meeting
the reporter asks about the danger of raising interest rates too high so it's a question about overdoing it so Paul says yes he acknowledges that he says that there are risks in both scenarios if interest rates are too low ,
then it's going to fuel inflation if interest rates are too high then it's going to damage the economy but in their decision-making process Powell says that they prefer to use core inflation as their gauge and Powell says that core inflation remains elevated so Powell says that they'll have to raise interest rates higher if they feel
that that's appropriate so the key takeaway is from this clip that the Federal Reserve puts more emphasis on core inflation compared to headline inflation .
thank you for the support and I wish a very nice day take care.
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