The United States Federal Reserve *Raised its Interest Rate by 0.25%* , 25BPS Bringing it to 4%.
Fed Vote in favor of policy was Almost unanimous. Fed Projections show 12 of 18 officials see one more 25-basis-point rate hike this year; four see two hikes; two see no more hikes. Fed 16 officials project at least one more rate hike in 2026.
*Fed's Warsh Speech* Inflation remains elevated. This decision comes when the economy appears to be strengthening. Key markers have improved in the recent months. Credit flows have been robust. I am hard-pressed to call financial conditions restrictive. The view that conditions are not restrictive was widely shared by the FOMC. The jobless rate remains low, openings and hours are increasing. The labor side of the Fed's remit is in good shape. The predominant focus of the Fed is on price stability. Inflation is too high, and has been for too long. The summer data does not tell me that the inflation situation has improved. There are too many categories that are posting increases above 3% on both 6 and 12 month basis. In July, we expressed a joint readiness to act. We must be confident that underlying inflation must be moving to 2% on a timely basis, and the FOMC decided this has not been met. Inflation risks are to the upside, labor risks are balanced. I have nothing for you about a discussion with the President. Because of the underlying strength of the economy, we can afford to focus on price stability. What happened in 7 weeks since we last met, data has shown that the economy has strengthened. Inflation trends were not passing the test, and I have seen little to change that. My colleagues are hard-pressed to describe financial conditions as restrictive, so we decided to remove a dose of accommodation. I have always been interested in a neutral rate academically, but I don't see it having an operational effect on decisions today. I was not waiting breathlessly on any one data point, including CPI. In aggregate, we're more or less at full employment. Other advanced economies are suffering from price pressures, too. I see 3
السوق في انتظار عملية بيع جيدة. أعتقد أن الاتجاه الهبوطي سيستمر بعد عملية الاستحواذ على السيولة فوق 4300 مع ارتفاع/ذروة عالية. احتمال رفع سعر الفائدة من مجلس الاحتياطي الفيدرالي قد تم تجاوزه بنسبة 92%.#btc #eth