{"id":41017,"date":"2023-07-27T04:04:11","date_gmt":"2023-07-27T08:04:11","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/dont-ignore-powell-another-rate-hike-is-still-on-the-table\/"},"modified":"2023-07-27T04:04:13","modified_gmt":"2023-07-27T08:04:13","slug":"dont-ignore-powell-another-rate-hike-is-still-on-the-table","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=41017","title":{"rendered":"Don\u2019t Ignore Powell. Another Rate Hike Is Still On the Table."},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-BAR-0000704002\">\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          wrap\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--wrap\n    article__inset--lead\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-wrap\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>Gone are the days of the Federal Reserve offering explicit forward guidance to markets and investors on monetary policy. The central bank is now acknowledging that the U.S. economy is in flux, and that the policy path forward is far from set in stone.<\/p>\n<p>\u201cIt is certainly possible that we would raise funds again at the September meeting if the data warranted,\u201d Fed Chairman Jerome Powell told reporters on Wednesday. \u201cAnd I would also say it\u2019s possible that we would choose to hold steady at that meeting.\u201d<\/p>\n<div class=\"paywall\">\n<p>In other words: Anything can happen.<\/p>\n<p>Powell kept driving home the message that the Fed may raise interest rates further this year, even though inflation is now less than one-third its peak level a year ago, and the central bank already has slowed the pace of monetary policy tightening.<\/p>\n<p>Rather than celebrate any progress made toward reining in inflation, he discounted much of it as a reversal of pandemic-specific phenomena. He acknowledged strength in consumer demand and rising consumer confidence, noting that the Fed will be \u201cwatching that carefully.\u201d And he emphasized that the central bank\u2019s job is far from finished.<\/p>\n<p>\u201cCore inflation is still pretty elevated,\u201d Powell said. \u201cSo we think we need to stay on task.\u201d<\/p>\n<p>Powell\u2019s comments amounted to a warning shot to investors who have been betting that the central bank would soon end its tightening cycle. Until a few months ago, many had expected to see rate cuts this year. <\/p>\n<p>Some investors appeared to shrug off Wednesday\u2019s press conference in much the same way: Initial stock market activity suggested that the bulls were in control, noted Chris Zaccarelli, chief investment officer for the Independent Advisor Alliance. The Dow Jones Industrial Average gained for the 13th consecutive day.<\/p>\n<p>\u201cThe narrative that the Fed is done\u2014or close to done\u2014seems to be winning out,\u201d Zaccarelli said.<\/p>\n<p>But while it might be easy to chalk Powell\u2019s tough tone up to simple posturing\u2014a bid to keep financial conditions from loosening prematurely\u2014economic data suggests his caution is warranted. Investors would do well to recognize that there could be a need for tighter policy by the time the Fed meets again on Sept. 19-20.<\/p>\n<p>Consumer sentiment is soaring, with the Conference Board\u2019s Consumer Confidence Index notching a two-year high earlier this week. In combination with wage gains now outpacing inflation, it could keep consumer spending and demand elevated. It is a sign of a healthy economy, but one that might need to see a more restrictive monetary policy to slow price growth.<\/p>\n<p>The housing market, meanwhile, appears to have bottomed out and is now regaining strength. While housing is one of the more interest rate-sensitive areas of the economy and had borne the brunt of earlier rate hikes, Powell acknowledged on Wednesday that activity in the sector had \u201cpicked up somewhat.\u201d Further strength there could suggest a need for further policy tightening.<\/p>\n<p>The Fed\u2019s inflation fight is only getting more difficult from here, and relief in the area where Powell most wants to see price growth slow\u2014the non-housing core services sector\u2014has so far proven elusive. Reining in inflation in so-called supercore services will likely require a slowdown in the labor market and in wage growth\u2014and that could require another tap on the brakes from the Fed.<\/p>\n<p>\u201cLabor market conditions broadly are going to be an important part of getting inflation back down,\u201d Powell said Wednesday. \u201cAnd that\u2019s why we think we need some further softening in labor market conditions.\u201d<\/p>\n<p>The Fed will get to see a bevy of economic data before its next policy meeting, including two jobs reports, two consumer-price-index inflation reports, a set of comprehensive wage data for the second quarter and a fresh release on economic growth..<\/p>\n<p>Meanwhile, though, don\u2019t dismiss the idea that the central bank has another rate hike up its sleeve. As they say: It ain\u2019t over until it\u2019s over.<\/p>\n<p>Write to Megan Cassella at megan.cassella@dowjones.com<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/articles\/powell-another-rate-hike-461172b9?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gone are the days of the Federal Reserve offering explicit forward guidance to markets and investors on monetary policy. The central bank is now acknowledging that the U.S. economy is in flux, and that the policy path forward is far from set in stone. \u201cIt is certainly possible that we would raise funds again at [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":41018,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-41017","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Don\u2019t Ignore Powell. Another Rate Hike Is Still On the Table. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Gone are the days of the Federal Reserve offering explicit forward guidance to markets and investors on monetary policy. The central bank is now\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=41017\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Don\u2019t Ignore Powell. Another Rate Hike Is Still On the Table. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Gone are the days of the Federal Reserve offering explicit forward guidance to markets and investors on monetary policy. The central bank is now\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=41017\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-27T08:04:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-27T08:04:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1690445052_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=41017#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=41017\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Don\u2019t Ignore Powell. Another Rate Hike Is Still On the Table.\",\"datePublished\":\"2023-07-27T08:04:11+00:00\",\"dateModified\":\"2023-07-27T08:04:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=41017\"},\"wordCount\":686,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=41017#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=41017\",\"url\":\"https:\/\/ifintechworld.com\/?p=41017\",\"name\":\"Don\u2019t Ignore Powell. Another Rate Hike Is Still On the Table. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-07-27T08:04:11+00:00\",\"dateModified\":\"2023-07-27T08:04:13+00:00\",\"description\":\"Gone are the days of the Federal Reserve offering explicit forward guidance to markets and investors on monetary policy. The central bank is now\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=41017#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=41017\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=41017#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Don\u2019t Ignore Powell. Another Rate Hike Is Still On the Table.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Don\u2019t Ignore Powell. Another Rate Hike Is Still On the Table. | iFintechWorld","description":"Gone are the days of the Federal Reserve offering explicit forward guidance to markets and investors on monetary policy. The central bank is now","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=41017","og_locale":"en_US","og_type":"article","og_title":"Don\u2019t Ignore Powell. Another Rate Hike Is Still On the Table. | iFintechWorld","og_description":"Gone are the days of the Federal Reserve offering explicit forward guidance to markets and investors on monetary policy. The central bank is now","og_url":"https:\/\/ifintechworld.com\/?p=41017","og_site_name":"iFintechWorld","article_published_time":"2023-07-27T08:04:11+00:00","article_modified_time":"2023-07-27T08:04:13+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1690445052_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=41017#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=41017"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Don\u2019t Ignore Powell. Another Rate Hike Is Still On the Table.","datePublished":"2023-07-27T08:04:11+00:00","dateModified":"2023-07-27T08:04:13+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=41017"},"wordCount":686,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=41017#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=41017","url":"https:\/\/ifintechworld.com\/?p=41017","name":"Don\u2019t Ignore Powell. Another Rate Hike Is Still On the Table. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-07-27T08:04:11+00:00","dateModified":"2023-07-27T08:04:13+00:00","description":"Gone are the days of the Federal Reserve offering explicit forward guidance to markets and investors on monetary policy. The central bank is now","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=41017#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=41017"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=41017#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Don\u2019t Ignore Powell. Another Rate Hike Is Still On the Table."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/41017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41017"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/41017\/revisions"}],"predecessor-version":[{"id":41019,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/41017\/revisions\/41019"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/41018"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}