According to a senior Fed economist, the latest data of consumer spending, wages. And prices indicate that the central bank’s prospects of delivering a smooth landing for the United States economy have improved slightly after a significant drop in previous months.
“Some of the releases were suggesting that the chances of a smooth landing might be review. “The Minneapolis Fed’s director of research, Andrea Raffo, stated in a bank interview on Thursday.
“We had significantly cut down on that. We’re probably getting more sure that we can do it.”
When Will We the Next Fed Meeting ?
Research directors at Fed banks play an important role in policymaking since they manage the series of briefings received by bank presidents prior to Federal Open Market Committee meetings.
When Fed officials decide interest rate decisions. They assist in putting together the quarterly interest-rate estimates that officials bring to meetings and that the Fed then releases.
The next meeting is schedule to take place December 13–14 in Washington. According to Raffo, and staff is just starting to make presentations for briefing that bank’s president, Neel Kashkari, would receive beforehand.
Thanks to a sharp run of Fed rate hikes intended to slow down the sharpest inflation in 40 years. According to a survey of economists. A US recession is more likely than not to occur in the coming 12 months.
The “overwhelming” feedback from connections in the area. According to Kashkari, is that there is a high demand for jobs but not enough workers to fill it.
At a Minnesota Chamber of Commerce event, Kashkari stated, “I’m not seeing much evidence of cooling.” And added that it is “open question” how far the central bank can raise rates.
Raffo cited a number of statistics, including the unemployment rate, retail sales, consumer price index, producer pricing index, and employment cost index. Whose most current readings indicated a soft landing would still be possible.
Will Fed Raises Interest Rates ?
A couple of weeks earlier, we had already seen an ECI release that was comparatively positive. The CPI followed next. We were confuse for a while because the PPI and other goods prices were declining while import prices remain quite low “Raffo stated.
”Seeing a few of these developments that were related to the soft landing story was comforting.”
However, he also cautioned, quoting other Fed officials, that the institution will have to see more than a month’s worth of such data before softening its strict stance.
On December 13, just before the FOMC meeting gets underway, the Labor Department will release its most recent CPI report.
It remains to be seen if good news from that study would arrive in time to significantly affect the new rate estimates.
However, the data appear somewhat to the right, therefore we take that into account “explained Raffo. “We are delighted.”