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San Francisco Federal Reserve President Mary Daly has stated that rate cuts may be necessary in 2024 to prevent the economy from becoming too tight. Daly believes that if inflation continues to decline, even with three rate cuts next year, the benchmark interest rate will still be restrictive. She also emphasized the importance of considering the impact of restrictive policies on the labor market and ensuring that jobs are not sacrificed for price stability. Daly's comments come after the Federal Reserve projected three rate cuts for 2024, causing stocks to surge and bond yields to fall. [Extracted from the article]

Federal Reserve Chair Jerome Powell's recent comments about inflation have caused confusion among investors about when and how quickly the Fed might cut interest rates. After projecting at least three rate cuts next year, Fed officials were surprised that investors expected even faster and deeper cuts. Powell's remarks about declining inflation and not leaving rates too high for too long sparked a market rally and speculation of a March rate cut. However, some Fed officials have pushed back against this speculation, leading to uncertainty about the future of interest rates. [Extracted from the article]

Inflation in the United States has stabilized at levels below last year's high but still above pre-pandemic levels, according to the Labor Department. The consumer-price index rose 3.1% in November from a year earlier, slightly slower than October but higher than expected. While the pace of improvement is mildly disappointing, economists believe that trends remain favorable. Treasury Secretary Janet Yellen stated that inflation is coming down and expects it to gradually decline to levels consistent with the Federal Reserve's target. [Extracted from the article]

Federal Reserve Chair Jerome Powell has indicated a shift in the central bank's stance on interest rates, moving away from raising rates and towards considering rate cuts. This change comes as inflation has slowed, prompting concerns about the potential harm of keeping rates too high. Powell's comments and projections of three rate cuts next year mark a significant reversal from previous statements about raising rates to combat inflation. The stock market responded positively to the news, with all three major indexes climbing. [Extracted from the article]

The U.S. economy added 199,000 jobs in November, indicating a gradual cooling of the labor market. This slower job growth is consistent with pre-pandemic levels and suggests a soft landing for the economy. The unemployment rate fell to 3.7%, and wage growth picked up slightly. The Federal Reserve is likely to hold rates steady at its next meeting, as the data supports a soft landing scenario. Sectors such as healthcare and government have seen the most job gains, while industries like transportation and retail have experienced slower growth. Overall, economists expect cooler wage gains and softening labor market conditions to impact consumers and economic output in 2024. [Extracted from the article]

Federal Reserve officials are confident that they don't need to continue raising interest rates to combat inflation, but they are hesitant to declare an end to rate hikes. Fed Chair Jerome Powell stated that their policy setting is "well into restrictive territory," indicating that tight monetary policy is slowing economic activity. However, Powell emphasized caution and stated that it would be premature to conclude that they have achieved a sufficiently restrictive stance. While there are growing expectations that the Fed will lower rates next spring, Powell stated that it is too soon to speculate on when policy might ease. The Fed is expected to hold rates steady at their December meeting, but investors are increasingly anticipating rate cuts next year. [Extracted from the article]

Consumer prices remained flat in October, signaling a slowdown in inflation and likely ending the Federal Reserve's interest rate increases. Overall inflation rose 3.2% from a year earlier, a slower pace than in September. Core inflation, which excludes volatile food and energy items, also showed a decrease in underlying price pressures. This news led to rallies on Wall Street, with stocks and government bonds soaring. However, many Americans are still concerned about the high prices of goods and services. The Fed is expected to extend its pause in rate increases at its next meeting in December. [Extracted from the article]

Keywords: gfx-contrib; wsjwashington; inflation; Economic Performance/Indicators; Inflation Figures/Price Indices; Monetary Policy; Interest Rates; Economic News; SYND; WSJ-PRO-WSJ.com EN gfx-contrib wsjwashington inflation Economic Performance/Indicators Inflation Figures/Price Indices Monetary Policy Interest Rates Economic News SYND WSJ-PRO-WSJ.com N.PAG N.PAG 1 07/28/23 20230727 NES 230727 Officials have slowed the pace of increases this year but aren't sure they have fully tackled inflation Federal Reserve Chair Jerome Powell said on Wednesday that the central bank will raise its benchmark interest rate by a quarter-percentage-point, bringing rates to the highest point in 22 years. Gfx-contrib, wsjwashington, inflation, Economic Performance/Indicators, Inflation Figures/Price Indices, Interest Rates, Monetary Policy, Economic News, SYND, WSJ-PRO-WSJ.com. [Extracted from the article]

Keywords: wsjwashington; inflation; Banking; Commercial Banking; Banking/Credit; Financial Services; Economic Performance/Indicators; Inflation Figures/Price Indices; Monetary Policy; Interest Rates EN wsjwashington inflation Banking Commercial Banking Banking/Credit Financial Services Economic Performance/Indicators Inflation Figures/Price Indices Monetary Policy Interest Rates N.PAG N.PAG 1 03/24/23 20230321 NES 230321 Officials must balance inflation concerns with new worries about spillovers from banking turmoil Graph: The Fed's decision this week on interest rates depends in part on how markets respond to the forced union of UBS and Credit Suisse. Wsjwashington, inflation, Banking, Commercial Banking, Banking/Credit, Financial Services, Economic Performance/Indicators, Inflation Figures/Price Indices, Monetary Policy, Interest Rates. [Extracted from the article]

Chairman Jerome Powell says too soon to talk about pausing rate increases. [Extracted from the article]