ilmscore | The Fed Is Pausing Rate Hikes (& Issues A New Warning)

The Fed Is Pausing Rate Hikes (& Issues A New Warning)

Published: 2023-11-04
Status: Available | Analyzed

Predictions from this Video

Total: 16
Correct: 0
Incorrect: 0
Pending: 16
Unrated: 0
Prediction
Topic
Status
The Federal Reserve Bank is not considering cutting interest rates and is instead focused on potentially increasing them further.
"The committee, aka the Federal Reserve Bank, is not thinking about cutting interest rates right now at all. Instead, the question is, should we hike more?"
Interest Rates
Pending
Strong economic and job growth could lead to increased inflation and further interest rate hikes.
"the above trend growth for the economy and the strong growth in the job market could lead to more inflationary pressures and lead to more potential rate hikes."
Inflation
Pending
Some banks predict that the current trend of consumer spending exceeding income will reach a breaking point in the second quarter of 2024.
"some banks are saying that we're going to see that at some point in the second quarter, meaning the middle part of 2024."
Consumer Spending
Pending
The Federal Reserve Bank aims to reduce inflation by softening the labor market, which implies fewer jobs and slower wage growth.
"the Federal Reserve Bank's trying to do is they want to bring inflation down. And that's why they're saying they want to soften the labor market."
Labor Market
Pending
Rising Treasury yields are expected to negatively impact economic activity, hiring, and inflation, though the precise extent of these effects is uncertain.
"tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation. The extent of these effects remain uncertain."
Treasury Yields
Pending
The Federal Reserve Bank intends to maintain higher interest rates for an extended period, potentially increasing them further, which will have an impact on the economy.
"the Federal Reserve Bank is saying that they want to keep interest rates higher for longer maybe even raise interest rates more which is going to create some sort of impact on the economy"
Interest Rates
Pending
The Federal Reserve is not considering cutting interest rates and is focused on potentially raising them further.
"The committee, aka the Federal Reserve Bank, is not thinking about cutting interest rates right now at all. Instead, the question is, should we hike more?"
Federal Reserve Interest Rates
Pending
The Federal Reserve's primary focus is on potentially increasing interest rates rather than cutting them.
"So, Joe Powell says, 'Don't worry about cutting interest rates right now. We're not thinking about cutting interest rates right now. The only thought on the Federal Reserve Bank's mind is, should we raise interest rates more?'"
US Economy
Pending
Strong economic and job growth may lead to increased inflation and further interest rate hikes.
"The above trend growth for the economy and the strong growth in the job market could lead to more inflationary pressures and lead to more potential rate hikes."
US Economy
Pending
Some banks predict a breaking point in consumer spending around the second quarter of 2024.
"A lot of banks are saying that we're going to see that at some point in the second quarter, meaning the middle part of 2024"
US Economy
Pending
While job gains have moderated, they remain strong, and the question is whether the job market will continue to weaken.
"employment gains have moderated since earlier in the year, but remain strong. So, the question is, are we going to continue to see a weakening in the job market?"
US Labor Market
Pending
Slowing wage growth is seen by the Federal Reserve as a way to curb inflation by reducing consumer spending and price increases.
"Because if your wages stop growing, you're not going to be able to keep spending more money. And if you can't keep spending more money, you're not going to be able to go to the store and buy more stuff. And if you can't go to the store to buy more stuff, that store is going to be forced to not raise the prices of their products. And that's what the Federal Reserve Bank is saying is going to help solve that inflationary problem."
US Labor Market
Pending
US Treasury yields have reached their highest levels since before the 2008 financial crisis in late 2023.
"So, what we've seen happen in 2023, especially over the last few months, is that the yields on these treasuries have shot up to some of the highest levels that we have seen since before the 2008 crash."
US Treasury Yields
Pending
Higher interest rates are expected to negatively impact economic activity, hiring, and inflation, although the exact extent is uncertain.
"tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation. The extent of these effects remain uncertain."
US Economy
Pending
The Federal Reserve intends to maintain high interest rates for an extended period, potentially increasing them further, which will affect the economy.
"the Federal Reserve Bank is saying that they want to keep interest rates higher for longer maybe even raise interest rates more which is going to create some sort of impact on the economy"
Federal Reserve Interest Rates
Pending
There may be more financial opportunities in the upcoming years (2024 and 2025).
"we could see more opportunities next year, the year after that."
US Economy
Pending