{"id":6012,"date":"2023-12-14T11:51:27","date_gmt":"2023-12-14T03:51:27","guid":{"rendered":"https:\/\/www.umtradings.com\/?p=6012"},"modified":"2024-02-05T08:22:22","modified_gmt":"2024-02-05T08:22:22","slug":"federal-reserve-holds-rates-steady-signals-end-of-hiking-cycle","status":"publish","type":"post","link":"https:\/\/www.umtradings.com\/th\/federal-reserve-holds-rates-steady-signals-end-of-hiking-cycle\/","title":{"rendered":"Is This the End of the Federal Reserve&#8217;s Hiking Cycle?"},"content":{"rendered":"<div class=\"wp-block-post-date has-text-color has-black-color has-medium-font-size\"><time datetime=\"2023-12-14T11:51:27+00:00\"><a href=\"https:\/\/www.umtradings.com\/th\/federal-reserve-holds-rates-steady-signals-end-of-hiking-cycle\/\">December 14, 2023<\/a><\/time><\/div>\n\n\n<div style=\"color:#ddd\" class=\"wp-block-genesis-blocks-gb-spacer gb-block-spacer gb-divider-solid gb-divider-size-1\"><hr style=\"height:30px\"\/><\/div>\n\n\n\n<h1 class=\"wp-block-heading has-black-color has-text-color\"><strong>Federal Reserve Holds Rates Steady, Signals End of Hiking Cycle<\/strong><\/h1>\n\n\n\n<p class=\"has-medium-font-size\">The Federal Reserve&#8217;s recent decision to maintain the federal funds rate has sparked discussions about the trajectory of economic indicators and the potential for future rate cuts.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">In this article, we delve into the key aspects of the Federal Reserve&#8217;s December meeting, examining economic projections, inflation trends, and the overall outlook for the US economy.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/www.umtradings.com\/wp-content\/uploads\/2023\/12\/\u5e02\u5834\u71b1\u9ede-1.jpg\" alt=\"\" class=\"wp-image-6013\"\/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><em>\uff08US Federal Funds Rate, FED\uff09&nbsp;<\/em><\/p>\n\n\n\n<div style=\"color:#ddd\" class=\"wp-block-genesis-blocks-gb-spacer gb-block-spacer gb-divider-solid gb-divider-size-1\"><hr style=\"height:30px\"\/><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>US Economic Projections and GDP Growth<\/strong><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">At the heart of the December meeting were updated economic projections, shedding light on the Federal Reserve&#8217;s perspective on the country&#8217;s economic landscape. The <a href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/files\/fomcprojtabl20231213.pdf\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>Summary of Economic Projections, December 13, 2023<\/strong><\/a> provides a detailed breakdown of these projections. Notably, GDP growth forecasts have been revised, with an optimistic outlook for 2023 but a slightly tempered expectation for 2024.<\/p>\n\n\n\n<div style=\"color:#ddd\" class=\"wp-block-genesis-blocks-gb-spacer gb-block-spacer gb-divider-solid gb-divider-size-1\"><hr style=\"height:30px\"\/><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Inflation Trends: PCE and Core PCE<\/strong><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Central to the Federal Reserve&#8217;s decision-making is the analysis of inflation trends, particularly the <strong>Personal Consumption Expenditure (PCE)<\/strong> and <strong>Core PCE inflation rates<\/strong>. The <a href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/2020-06-mpr-part3.htm\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">Monetary Policy Report \u2013 June 2020<\/a> gives insights into the medians of projections for these key indicators. <\/p>\n\n\n\n<p class=\"has-medium-font-size\">Recent data, as discussed in <a href=\"https:\/\/www.cnbc.com\/2023\/11\/30\/pce-inflation-report-october-2023-.html\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>Fed&#8217;s favorite gauge shows inflation rose 0.2% in October<\/strong><\/a>, indicates a nuanced approach by the Fed, favoring the core PCE reading over the consumer price index.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The <strong><a href=\"https:\/\/www.cnbc.com\/2023\/12\/13\/fed-lowers-inflation-forecast-for-2024-seeing-core-pce-falling-to-2point4percent.html\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">Fed lowers inflation forecast for 2024<\/a><\/strong>, signaling a decline to 2.4%, aligns with the overall trend of moderating inflation expectations.<\/p>\n\n\n\n<div style=\"color:#ddd\" class=\"wp-block-genesis-blocks-gb-spacer gb-block-spacer gb-divider-solid gb-divider-size-1\"><hr style=\"height:30px\"\/><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Unemployment and Federal Funds Rate<\/strong><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Examining the <a href=\"https:\/\/www.stlouisfed.org\/publications\/regional-economist\/2023\/nov\/slower-gdp-growth-falling-inflation-us-economic-outlook-2024\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>Slower GDP Growth, Falling Inflation in 2024 Outlook<\/strong><\/a> report from the Federal Reserve Bank of St. Louis provides insights into unemployment rate projections. The forecast suggests a slow upward drift to an average of 4.2% in 2024, emphasizing a nuanced approach to economic forecasting.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Additionally, the <a href=\"https:\/\/www.philadelphiafed.org\/-\/media\/frbp\/assets\/economy\/reports\/monetary-policy-reports\/mpr231013-using-rules-for-benchmarking.pdf\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>Monetary Policy Report: Using Rules for Benchmarking<\/strong><\/a> by the Federal Reserve Bank of Philadelphia highlights expectations for the federal funds rate, indicating a potential surprise hike.<\/p>\n\n\n\n<div style=\"color:#ddd\" class=\"wp-block-genesis-blocks-gb-spacer gb-block-spacer gb-divider-solid gb-divider-size-1\"><hr style=\"height:30px\"\/><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Economic Outlook and Future Expectations<\/strong><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">For a broader perspective on the economic outlook, the <strong><a href=\"https:\/\/www.cbo.gov\/publication\/59431\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">An Update to the Economic Outlook: 2023 to 2025<\/a><\/strong> by the Congressional Budget Office outlines the growth rate of the PCE price index, a key metric for assessing inflation. It emphasizes the importance of the PCE inflation measure in understanding the economic landscape.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Additionally, insights from <a href=\"https:\/\/www.kansascityfed.org\/research\/charting-the-economy\/\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>Charting the Economy<\/strong><\/a> by the Federal Reserve Bank of Kansas City offer a visual representation of how a surprise hike in the federal funds rate can impact headline personal consumption expenditure (PCE) inflation.<\/p>\n\n\n\n<div style=\"color:#ddd\" class=\"wp-block-genesis-blocks-gb-spacer gb-block-spacer gb-divider-solid gb-divider-size-1\"><hr style=\"height:30px\"\/><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\n<div data-schema-only=\"false\" class=\"wp-block-aioseo-faq has-black-color has-text-color\"><h3 class=\"aioseo-faq-block-question\"><strong><mark class=\"has-inline-color has-black-color\">Q: What is the Federal Reserve&#8217;s preferred measure of inflation?<\/mark><\/strong><\/h3><div class=\"aioseo-faq-block-answer\">\n<p class=\"has-medium-font-size\">A: The Federal Reserve favors the Core PCE inflation reading over the consumer price index, as discussed in <a href=\"https:\/\/www.cnbc.com\/2023\/11\/30\/pce-inflation-report-october-2023-.html\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>Fed&#8217;s favorite gauge shows inflation rose 0.2% in October<\/strong><\/a>.<\/p>\n<\/div><\/div>\n\n\n\n<div data-schema-only=\"false\" class=\"wp-block-aioseo-faq has-black-color has-text-color\"><h3 class=\"aioseo-faq-block-question\"><strong><mark class=\"has-inline-color has-black-color\">Q: How has the Fed adjusted its inflation forecast for 2024?<\/mark><\/strong><\/h3><div class=\"aioseo-faq-block-answer\">\n<p class=\"has-medium-font-size\">A: The <a href=\"https:\/\/www.cnbc.com\/2023\/12\/13\/fed-lowers-inflation-forecast-for-2024-seeing-core-pce-falling-to-2point4percent.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Fed lowers inflation forecast for 2024<\/strong><\/a>, anticipating a decline to 2.4% in 2024.<\/p>\n<\/div><\/div>\n\n\n\n<div data-schema-only=\"false\" class=\"wp-block-aioseo-faq has-black-color has-text-color\"><h3 class=\"aioseo-faq-block-question\"><strong><mark class=\"has-inline-color has-black-color\">Q: What are the expectations for the federal funds rate?<\/mark><\/strong><\/h3><div class=\"aioseo-faq-block-answer\">\n<p class=\"has-medium-font-size\">A: Insights from the <a href=\"https:\/\/www.philadelphiafed.org\/-\/media\/frbp\/assets\/economy\/reports\/monetary-policy-reports\/mpr231013-using-rules-for-benchmarking.pdf\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\"><strong>Monetary Policy Report: Using Rules for Benchmarking<\/strong><\/a> suggest potential changes in the federal funds rate, indicating a nuanced approach to benchmarking.<\/p>\n<\/div><\/div>\n\n\n\n<div style=\"color:#ddd\" class=\"wp-block-genesis-blocks-gb-spacer gb-block-spacer gb-divider-solid gb-divider-size-1\"><hr style=\"height:30px\"\/><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Bottom Line<\/strong><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">In conclusion, the Federal Reserve&#8217;s recent decisions and economic projections paint a complex picture of the US economic landscape. From GDP growth to inflation trends and the federal funds rate, multiple factors are at play. <\/p>\n\n\n\n<p class=\"has-medium-font-size\">Staying informed about these dynamics is crucial for businesses and individuals alike, especially as the Fed signals a potential end to the current hiking cycle.<\/p>\n\n\n\n<div style=\"color:#ddd\" class=\"wp-block-genesis-blocks-gb-spacer gb-block-spacer gb-divider-solid gb-divider-size-1\"><hr style=\"height:30px\"\/><\/div>\n\n\n\n<div class=\"wp-block-cover is-light gb-block-cta\" style=\"padding-top:2%;min-height:13em;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim-100 has-background-dim\" style=\"background-color:#f3f4f0\"><\/span><div class=\"wp-block-cover__inner-container is-layout-flow wp-block-cover-is-layout-flow\">\n<h2 class=\"wp-block-heading has-text-align-center\" style=\"font-size:32px;line-height:1\">Explore Ultima Markets News Hub<\/h2>\n\n\n\n<p class=\"has-text-align-center\" style=\"line-height:1\">Stay Informed with the Latest Updates \u2013 Dive into Our Articles<\/p>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-499968f5 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50 has-custom-font-size gb-block-button has-medium-font-size\" style=\"line-height:1.2\"><a class=\"wp-block-button__link has-black-color has-text-color has-background wp-element-button\" href=\"https:\/\/www.umtradings.com\/th\/resources\/market-outlook\/news\/\" style=\"border-radius:5px;background-color:#d2fc61;padding-top:10px;padding-right:1em;padding-bottom:10px;padding-left:1em\">Explore News<\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-small-font-size\"><em><strong>Disclaimer\u202f\u202f&nbsp;<\/strong><\/em><\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.\u202f<\/em>&nbsp;<\/p>\n\n\n\n<p class=\"has-small-font-size\"><em><strong>Copyright \u00a9 2023 Ultima Markets Ltd. All rights reserved.&nbsp;<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Holds Rates Steady, Signals End of Hiking Cycle The Federal Reserve&#8217;s recent decision to maintain the federal funds rate has sparked discussions about the trajectory of economic indicators and the potential for future rate cuts. In this article, we delve into the key aspects of the Federal Reserve&#8217;s December meeting, examining economic projections, [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":6885,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2,3],"tags":[39,43],"class_list":["post-6012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market_news","category-latest","tag-fed","tag-interest-rate"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.umtradings.com\/th\/wp-json\/wp\/v2\/posts\/6012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.umtradings.com\/th\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.umtradings.com\/th\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.umtradings.com\/th\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.umtradings.com\/th\/wp-json\/wp\/v2\/comments?post=6012"}],"version-history":[{"count":0,"href":"https:\/\/www.umtradings.com\/th\/wp-json\/wp\/v2\/posts\/6012\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.umtradings.com\/th\/wp-json\/wp\/v2\/media\/6885"}],"wp:attachment":[{"href":"https:\/\/www.umtradings.com\/th\/wp-json\/wp\/v2\/media?parent=6012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.umtradings.com\/th\/wp-json\/wp\/v2\/categories?post=6012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.umtradings.com\/th\/wp-json\/wp\/v2\/tags?post=6012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}