The central bank left interest rates unchanged from its September meeting, but its formal statement acknowledged that “economic activity expanded at a strong pace in the third quarter.” In its last statement in September, it referred to the economy’s “solid” pace.
But the Fed and Chairman Jerome Powell made sure that the lack of action Wednesday does not mean that rates could be raised should incoming data show the economy is remaining strong.
And the Fed says it remains committed to bringing annual inflation down to its target level of 2%.
“As of Oct 31, markets expect that the Federal Reserve will keep interest rates above 4.5% through the end of 2024.
But we think that interest rates could go much lower,” said BeiChen Lin, investment strategy analyst at Russell Investments.
Persons:
Jerome Powell, Powell, “, We’re, ” Powell, “ We’re, It’s, ”, Neel Mukherjee, Subadra Rajappa, BeiChen Lin
Organizations:
Federal Reserve, Commerce Department, Fed, Societe Generale, Russell Investments
Locations:
TIAA, 10y