Powell on Fed rate decision: Top 3 takeaways
12/14/2023 05:52
The Federal Reserve announced Wednesday that it has decided to maintain interest rates in a range of 5.25%-5.50%. Federal Reserve Chairman Jerome Powell announced the decision this afternoon. Here are the top three takeaways investors need to know regarding the decision. 1. The Fed remains committed to return inflation to 2% (00:00:03) "Inflation is still too high. Ongoing progress in bringing it down is not assured, and the path forward is uncertain," Powell said. "As we look ahead to next year, I want to assure the American people that we're fully committed to returning inflation to our 2% goal." 2. The Fed decided to maintain target range at 5.25-5.5% (00:00:39) Powell explained, "The committee decided at today's meeting to maintain the target range for the Federal funds rate at 5.25-5.5%, and to continue the process of significantly reducing our securities holdings." 3. Inflation expectations of the Fed (00:01:09) Powell said, "Longer term inflation expectations appear to remain well anchored, as reflected in a broad range of surveys of households, businesses, and forecasters, as well as measures from financial markets."
The Federal Reserve announced Wednesday that it has decided to maintain interest rates in a range of 5.25%-5.50%. Federal Reserve Chairman Jerome Powell announced the decision this afternoon. Here are the top three takeaways investors need to know regarding the decision.
1. The Fed remains committed to return inflation to 2% (00:00:03)
"Inflation is still too high. Ongoing progress in bringing it down is not assured, and the path forward is uncertain," Powell said. "As we look ahead to next year, I want to assure the American people that we're fully committed to returning inflation to our 2% goal."
2. The Fed decided to maintain target range at 5.25-5.5% (00:00:39)
Powell explained, "The committee decided at today's meeting to maintain the target range for the Federal funds rate at 5.25-5.5%, and to continue the process of significantly reducing our securities holdings."
3. Inflation expectations of the Fed (00:01:09)
Powell said, "Longer term inflation expectations appear to remain well anchored, as reflected in a broad range of surveys of households, businesses, and forecasters, as well as measures from financial markets."