Raising 75 basis points as expected, the Fourth Meeting in a row theyre doing that it is interesting though the statement added this line, saying that the fed anticipates ongoing rate increasing will be appropriate to get inflation back to the 2 foal. Then the statement says this, in determining the pace of future increases in the target range the committee will take into account cumulative tightening Monetary Policy, the lags which Monetary Policy affects the Economic Activity and inflation in economic and financial developments. The Federal Reserve statement says they will see modest growth. They have seen that spending, production, job gains, has been robust. Inflation is elevated saying it is elevated because of supply and demand imbalances mainly due to the pandemic with higher food and energy prices. The statement says the war in ukraine is putting that upward pressure on inflation and the fed indicates that they want to continue the rate of Balance Sheet runoff on the predetermi
Tightening of Monetary Policy and also the lags and their impact on inflation and Overall Economic activity. Acknowledging there is a lag between the actions its taken to date and the impact theyve had on the economy so far, raisirais new questions about when the fed could evaluate those actions and at what point theyll be fully baked in thanks very much. Appreciate that. Lets bring in our panel as we see stock averages pare the losses s p is up 15 points. Dow just jumped 270 points nasdaq and nasdaq 100 have turned positive. Were seeing yields come off tenyear is hanging on to 4 just barely. Lets bring in our panel back in. Lets also add steve liesman, bob pisani and Rick Santelli steve, lets start with you and the change in language that kayla laid out she highlighted the most important part and it looks like theres two pieces to it the first one here in determining the pace of future increases in the target range, the committee will take into account the cumulative tightening of Mon
Exacerbating supply chain issues because of lockdowns. The fed will continue to run off its Balance Sheet as planned that pace starting in september will be 60 billion in treasurys and 17. 5 billion in mortgagebacked securities. That continues to the statement, goes on to say the fed will adjust monetary stance based on eve merging risks. This was a unanimous statement, includes votes 3 00 new members, full board, lisa cook, michael barr. The fed raising rates 75 basis points as expected but saying recent indicators show that spending and production have slowed, have softened is the word they used. Charles, back to you. Charles a lot of interesting juicy stuff. Edward, thank you very much my friend. The fed has made the hike expected. The street has to deal with the guessing game. You heard what edward said. New words, some taken out. Maybe well learn some more in the question and answer period that is very important, more so today. This is a very serious dilemma, folks, twin evils of
Across board. The big one, the fed sees federal funds rate at 4. 4 by end of this year. The fed sees one more rate hike in 2023 and possibly and rate cuts in 2024 and 2025. This year with two meetings left the Federal Reserve is indicating those hikes could be 75, 50 basis point combination of those two to get to the 4. 4 federal funds rate at end of this year. Cuts in 2024 they have to go back, go going back to the 25 basis point moves which the fed chairman does like to do, four rate hikes, rate cuts in 2024 and another four rate cuts in 2025 if they use that 25 basis point americament. Gdp goes down to. 2 of all of 2022. Only growing by 1. 2 in 2023 and 1. 7 in 2024 and 1. 8 in 2025. All under 2 growth for the foreseeable future. The fed believes the Unemployment Rate rises slightly from where it is to 3. 8 by the end of this year. They have the Unemployment Rate going to 4. 4 end of next year, staying there. The fed sees pce inflation, they have upgraded that projection to 5. 4 by
Senior medical correspondent, elizabeth cohen. And there is more of what is 100 cases now outside of new york city. All eyes have been on the Pacific Northwest and washington state. Tell us more of what we know about the containment plan of this cluster. This is a very dramatic move by Governor Cuomo. He was from new rochelle and the cases kept ongoing up ever since that positive test. Thats the area we are talking about. The containment area. It will be a mile radius of new rochelle. Schools are going to be closed and large facilities like places like worships are going to be closed and businesses will be closed. The National Guards are going to come in and help bring food to people in their home and clean out public areas, all for a twoweek period beginning of two days. Well talk about disruption of life. It is going to be a serious disruption of life as this particular area as you said the governor is saying this may be possibly the biggest cluster that we have seen in the entire Un