Fed has no plan to cut rates next year despite market and global pressure
SIMONE DEL ROSARIO: WHETHER INVESTORS BELIEVE IT OR NOT, THE FED HAS NO PLANS TO CUT RATES NEXT YEAR, DESPITE MARKETS PRICING IT IN.
SAN FRANCISCO FED PRESIDENT MARY DALY: i see us as raising to a level that we believe is restrictive enough to bring inflation down and then holding it there until we see inflation truly get close to 2%.
SIMONE DEL ROSARIO: WITH STOCKS IN A DOWNTURN AND WORLD ECONOMIES TEETERING ON THE EDGE OF RECESSION, THE FEDERAL RESERVE IS GETTING PRESSURE ON MULTIPLE SIDES TO SLOW DOWN ITS AGGRESSIVE RATE HIKE CAMPAIGN.
SINCE MARCH, THE FED HAS HIKED RATES BY 3 PERCENTAGE POINTS FROM NEAR ZERO.
AND ATLANTA FED PRESIDENT RAPHAEL BOSTIC SAID THIS WEEK HE’D LIKE TO SEE IT REACH 4 TO 4.5% BY THE END OF THIS YEAR.
SKYROCKETING RATES HAVE SENT MORTGAGE RATES TO 16 YEAR HIGHS WITH LENDING SPUTTERING ACROSS ALL SECTORS IN THE U-S.
AND THIS WEEK A UNITED NATIONS AGENCY WARNED THAT CENTRAL BANK ACTIONS ARE PUSHING THE WORLD INTO RECESSION, HURTING THE MOST VULNERABLE, ESPECIALLY IN DEVELOPING COUNTRIES.
BUT FITCH RATINGS CHIEF ECONOMIST BRIAN COULTON TELLS ME GLOBAL REPERCUSSIONS ARE UNLIKELY TO SWAY THE FED.
BRIAN COULTON: to not tighten monetary policy as much as as they feel they need to, to achieve that outcome in the United States because of what’s happening in the Chinese currency or what’s happening in emerging markets. I think that will be, I don’t think they would be prepared to take that risk.
SIMONE DEL ROSARIO: THE SINGULAR FOCUS – HE SAYS, IS INFLATION. CONSUMER PRICES ROSE 8.3% ON THE YEAR IN AUGUST, WITH SEPTEMBER’S DATA DUE NEXT WEEK.
I’M SIMONE DEL ROSARIO, IN NEW YORK IT’S JUST BUSINESS.