FOMC Statement
Recent indicators suggest that economic activity expanded at a strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation remains elevated.
The U.S. banking system is sound and resilient. Tighter financial and credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. The Committee will continue to assess additional information and its implications for monetary policy. In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Lame Statement and Reaction
Well it was a lame and totally expected statement.https://t.co/RLgWQ0BW9Z
— Mike “Mish” Shedlock (@MishGEA) November 1, 2023
Live Q&APerhaps the Live Q&A will be more entertaining.Here’s an alternate source.
ISM Manufacturing Plunges to 46.7 Percent. New Orders, Backlogs in ContractionIn other news today, ISM Manufacturing Plunges to 46.7 Percent. New Orders, Backlogs in ContractionHere’s the key snip:
Telling Statistic
Arguably, the most telling statistic is that eighty-nine percent of panelists’ companies reported ‘same’ or ‘lower’ prices in October.
Overall weakness in prices can be attributed to falling demand, not strikes, And it’s despite artificial demand spurred by the Inflation Reduction Act.
Falling prices will be welcomed by the Fed.
More By This Author:ISM Manufacturing Plunges to 46.7 Percent. New Orders, Backlogs In ContractionCase-Shiller Home Prices Climb Another One Percent As Bubble Expands FurtherPeople Are Paid More To Work Less. This Explains Job Shortages And Productivity
