Outlook for the funds rate subject to considerable uncertainty – Crypto News – Crypto News
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Outlook for the funds rate subject to considerable uncertainty – Crypto News

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Inflation in the US is well above target and the labor market remains very tight, the US Federal Reserve’s recently published monetary policies The report to Congress read, ahead of Chairman Jerome Powell’s Capitol Hill testimony next week, per Reuters.

Key Takeaways

“Bringing inflation down likely to require a period of below-trend growth, some softening of labor market conditions.”

“Financial conditions have tightened further since January.”

Some Indicators of future business defaults are somewhat elevated.”

“Several major foreign central banks continued tightening, but also emphasized the need to be cautious given lags and uncertainty.”

“Core services ex-housing inflation has not shown signs of easing.”

“Slowing inflation may depend in part on further easing of the tight labor market.”

“Outlook for the funds rate is subject to considerable uncertainty.”

“Will adjust pace of balance sheet contraction if needed.”

“Bank credit conditions have tightened further since March.”

“The March banking system turmoil reportedly left an imprint on bank lending conditions, especially for mid-sized and small banks.”

Market response

The US Dollar Index Clings to modest recovery gains near 102.40 after this report.

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