美연준위원들, 기준금리 고점 도달 인식 "올해 금리인하 적절"
U.S. Federal Reserve officials are eying rate cuts in the new year, according to the December FOMC meeting minutes.
They expect three rate cuts, and are now focusing on timing.
Lee Kyung-eun has the details.
U.S. Federal Reserve officials agreed that interest rate cuts are likely in 2024, but exactly "when" remains uncertain.
That's according to minutes from the Federal Open Market Committee's December 12-13 meeting released on Wednesday.
At that meeting, the benchmark rate was kept steady for the third time to maintain a 5-point-2-5 percent to 5-point-5 percent range.
The decision was also seen as the clearest signal yet of an end to its aggressive rate hike campaign is over.
This came as the FOMC, responsible for setting rates, said its policy had likely reached or was close to its peak, for the current tightening cycle.
During the two-day session, participants also acknowledged the progress made in the battle to bring down inflation.
In fact, consumer prices in the U.S. slowed to a five-month low in November, with the Consumer Price Index, a key gauge of inflation, rising 3-point-1-percent on-year.
The CPI has been slowing after it hit 9-point-1 percent in June 2022.
Three rate cuts are expected,.. each by a quarter-percentage point by the end of 2024.
However the minutes noted high uncertainty regarding the timing, saying the actual policy path will depend on how the economy evolves.
That could mean they are keeping options open with further monetary tightening potentially on the table,.. as a response to changing economic conditions.
December's FOMC minutes also echo the Federal Reserve Chairman Jerome Powell's remarks after the meeting.
Powell changed the tune on the central bank's monetary policy, saying the end of the tightening campaign is "in sight."
However, he still took a cautionary stance on cutting rates, saying the 2 percent inflation target is yet to be achieved.
"While we believe that our policy rate is likely at or near its peak for this tightening cycle, the economy has surprised forecasters in many ways since the pandemic. Ongoing progress toward our 2% inflation objective is not assured."
Following the reaffirmation of the Federal Reserve's stance in recent minutes, U.S. 10-year Treasury yields experienced a decline.
It extended losses for a fourth day, topping the 4 percent mark on Wednesday,
indicating growing concerns from investors about the Federal Reserve keeping a hawkish monetary policy for the time being.
Lee Kyung-eun, Arirang News.
#UnitedStates #Federal_Reserve #Interest_rate #미국 #기준금리 #연준 #Arirang_News #아리랑뉴스
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2024-01-04, 09:00 (KST)
U.S. Federal Reserve officials are eying rate cuts in the new year, according to the December FOMC meeting minutes.
They expect three rate cuts, and are now focusing on timing.
Lee Kyung-eun has the details.
U.S. Federal Reserve officials agreed that interest rate cuts are likely in 2024, but exactly "when" remains uncertain.
That's according to minutes from the Federal Open Market Committee's December 12-13 meeting released on Wednesday.
At that meeting, the benchmark rate was kept steady for the third time to maintain a 5-point-2-5 percent to 5-point-5 percent range.
The decision was also seen as the clearest signal yet of an end to its aggressive rate hike campaign is over.
This came as the FOMC, responsible for setting rates, said its policy had likely reached or was close to its peak, for the current tightening cycle.
During the two-day session, participants also acknowledged the progress made in the battle to bring down inflation.
In fact, consumer prices in the U.S. slowed to a five-month low in November, with the Consumer Price Index, a key gauge of inflation, rising 3-point-1-percent on-year.
The CPI has been slowing after it hit 9-point-1 percent in June 2022.
Three rate cuts are expected,.. each by a quarter-percentage point by the end of 2024.
However the minutes noted high uncertainty regarding the timing, saying the actual policy path will depend on how the economy evolves.
That could mean they are keeping options open with further monetary tightening potentially on the table,.. as a response to changing economic conditions.
December's FOMC minutes also echo the Federal Reserve Chairman Jerome Powell's remarks after the meeting.
Powell changed the tune on the central bank's monetary policy, saying the end of the tightening campaign is "in sight."
However, he still took a cautionary stance on cutting rates, saying the 2 percent inflation target is yet to be achieved.
"While we believe that our policy rate is likely at or near its peak for this tightening cycle, the economy has surprised forecasters in many ways since the pandemic. Ongoing progress toward our 2% inflation objective is not assured."
Following the reaffirmation of the Federal Reserve's stance in recent minutes, U.S. 10-year Treasury yields experienced a decline.
It extended losses for a fourth day, topping the 4 percent mark on Wednesday,
indicating growing concerns from investors about the Federal Reserve keeping a hawkish monetary policy for the time being.
Lee Kyung-eun, Arirang News.
#UnitedStates #Federal_Reserve #Interest_rate #미국 #기준금리 #연준 #Arirang_News #아리랑뉴스
📣 Facebook : https://www.facebook.com/arirangtvnews
📣 Twitter : https://twitter.com/arirangtvnews
📣 Homepage : https://v2.arirang.com/
2024-01-04, 09:00 (KST)
