SALT LAKE CITY (KUTV) — After a major speech, many believe the U.S. Federal Reserve may press pause on hiking interest rates, but some fear that risks a resurgence of inflation.
When the fed raises rates it works to put downward pressure on inflation but also can cause higher mortgage rates and a weaker job market.
On Thursday, the Chairman of the Federal Reserve spoke ahead of a coming meeting that will decide if rate hikes will continue through the end of 2023.
During the speech, the stock market dipped and rose in reaction to what he said.
Earlier in the week one of feds board members said a wait and see approach is best right now.
Today it appeared that Chairman Jerome Powell might agree as he said, “Given the uncertainties and risks, and how far we have come, the Committee is proceeding carefully. We will make decisions about the extent of additional policy firming and how long policy will remain restrictive based on the totality of the incoming data, the evolving outlook, and the balance of risks.”
Powell didn’t outright say the fed won’t raise rates, but still many analysts have taken that as a likely message from Powell’s address.
If that is true, it may mean mortgage rates are unlikely to rise much higher through the end of the year.
Source: kutv.com