Equipment Finance News
  • News
  • Event
  • Data
  • Features
  • Lender Directory
  • PodcastNew
  • WebinarsNew
    • Webinar Library
Log In
No Result
View All Result
  • Dealers
  • Lenders
  • Transportation
  • Agriculture
  • Construction
  • Materials Handling
  • Rentals
  • Compliance
  • Data Analysis
Equipment Finance News
  • News
  • Event
  • Data
  • Features
  • Lender Directory
  • PodcastNew
  • WebinarsNew
    • Webinar Library
No Result
View All Result
Equipment Finance News
No Result
View All Result

Fed holds rates at 22-year high, signals concern on yield rise

Benchmark rate sits at 5.25% to 5.5%

Bloomberg NewsbyBloomberg News
November 1, 2023
in Lender Operations
Reading Time: 3 mins read
0
Share on FacebookShare on LinkedIn

The Federal Reserve held interest rates at a 22-year high for a second straight meeting, while suggesting that the recent rise in Treasury yields may weigh on the economy and inflation.

“Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation,” the US central bank’s policy-setting Federal Open Market Committee said in a post-meeting statement published Wednesday in Washington, adding the word “financial” to language that previously referred only to credit conditions.

“The extent of these effects remains uncertain,” the Fed said, repeating that it “remains highly attentive to inflation risks.”

The decision left the target range for the benchmark federal funds rate unchanged at 5.25% to 5.5%, the highest since 2001, as part of a strategy to slow the pace of rate increases as the central bank nears the end of its tightening campaign.

Officials made minimal changes to the statement. One tweak was to upgrade their description of the pace of economic growth to “strong” from “solid” to reflect better economic data released since their September gathering.

Policymakers repeated that, in determining “the extent of additional policy firming that may be appropriate to return inflation to 2% over time,” they would take into account the cumulative tightening of monetary policy, as well as lag effects on the economy and inflation.

Hike Odds

Heading into the decision, traders saw a one-in-three chance of a 25 basis-point increase by the end of January. The FOMC meets next on Dec. 12-13 and then on Jan. 30-31.

After rapidly raising borrowing costs from near-zero levels in March 2022 to fight against inflation, officials are taking time to assess the effects of their past rate moves without ruling out further tightening.

Some officials have also said the recent surge in long-term Treasury yields may reduce the need for further rate increases.

The decision was unanimous.

Fed Chair Jerome Powell will share more insight on the decision and the outlook at a 2:30 p.m. press conference in Washington. A string of economic reports pointing to robust growth and resilient consumers is keeping pressure on officials to leave the door open to future rate hikes.

GDP Growth

The US economy expanded at a 4.9% annualized rate last quarter, the fastest clip in almost two years as consumers splurged broadly on furniture, travel and other discretionary purchases.

A measure of underlying inflation that’s closely watched by Fed officials also accelerated to a four-month high in September, when job gains blew past expectations.

Policymakers will get another update on the employment picture Friday, when the Labor Department will release the jobs report for October.

Read More: American Summer of Spending Goes Beyond Taylor Swift and Movies

Whether that economic strength persists or slows down is one of the biggest questions facing policymakers, and the outcome has the potential to shape the direction for inflation and interest rates.

Projections released at the Fed’s September gathering showed a majority of policymakers at the time supported one more rate increase this year. They also saw borrowing costs remaining higher for longer.

Treasury Yields

But a rise in yields since the gathering has prompted some officials, including Dallas Fed President Lorie Logan and other hawkish policymakers, to signal support for another pause in rate increases at this week’s meeting.

Many forecasters expect spending and growth to slow this quarter as larger debt payments, lower income gains and shrinking cash piles weigh on households.

Tentative agreements between the United Auto Workers union and all three of Detroit’s biggest automakers remove one economic obstacle. But officials will need to monitor other possible headwinds, including mortgage rates near 8% sidelining home buyers, a potential US government shutdown and an escalating war between Israel and Hamas.

However, other policymakers say they’re concerned the surprisingly strong economy may cause inflation to remain stubbornly high for longer than officials would like to see.

“Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy,” Powell said in New York last month.

–By Jonnelle Marte (Bloomberg)

Tags: Federal Reserveinterest rates
Previous Post

Caterpillar falls as shrinking backlog stokes demand worry

Next Post

Ford transforming fleet management solutions with Ford Pro

Related Posts

Equipment finance advisers form strategic alliance
Lender Operations

Alliance Equipment expands financing with Deutsche Bank, Oaktree

May 13, 2025
Digital Ecosystems
Lender Operations

Digital contracting slips amid industry volatility

May 9, 2025
DLL closes first ABS deal of 2023
Lender Operations

DLL portfolio expands 7% in 2024

May 8, 2025
Next Post
A Ford Motor Dealership Ahead Of Earnings Figures

Ford transforming fleet management solutions with Ford Pro

Proud Member Of

Check Out Our Industry Event

Stay Informed With Our 8 Newsletters

The Dig Podcast

Dealer Operations

AI development bolstering commercial vehicle dealerships

New commercial vehicle sales rise 9% in Q1

May 9, 2025
2023. Caterpillar Inc. is scheduled to release earnings figures on October 31.

Caterpillar dealer Finning sells 4Refuel in $450M deal

May 9, 2025
Yellow self propelled articulated boom lift and scissor lift on background of street with trees and sky. Alta equipment sales revenue up 45% YoY.

Alta Equipment construction revenue slides 4% in Q1

May 8, 2025
  • About Us
  • Advertise
  • Contact Us
  • Privacy Terms
  • ADA Compliance

 Manage Cookie Consent

Connect with us

© 2025 Royal MediaRoyal Media

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • News
    • All News
    • Dealers
    • Lenders
    • Transportation
    • Agriculture
    • Construction
    • Material Handling
    • Rentals
    • Compliance
    • Data Analysis
  • Event
  • Data
  • Features
  • Lender Directory
  • Podcast
  • Webinars
    • Webinar Library

© 2025 Royal MediaRoyal Media

THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
Save & Accept