Powell and other Fed bankers plan to keep interest rates high, no matter what reality is telling them

The Federal Reserve decided against making any change to interest rates that are at a 22-year high. But Wall Streeters were caring less about what the Fed might do today, and wanted a better hint at what they might do in the future.

Key Takeaways:
- Fed leaves rates unchanged, signals one more hike this year
- Powell says central bank to "proceed carefully" on rate path
- Upgraded growth forecast bolsters soft-landing view
- Two-year Treasury yields flat after initial surge https://t.co/Joksixy0SY

— Bloomberg (@business) September 20, 2023

What a big jump in the Fed's economic growth (GDP) forecasts:

2023: 2.1% (versus 1% forecast in June)
2024: 1.5% (versus 1.1% forecast in June)

**The Fed is starting to believe in a 'soft landing'**

Unemployment and core inflation both lowered for 2023 as well. pic.twitter.com/7c1i8F32iW

— Heather Long (@byHeatherLong) September 20, 2023

But while the Fed thinks the real economy will be in better shape, you also should notice that they project interest rates to stay at these elevated levels for the rest of 2023, at a 1/2 point higher for 2024 and 2025 than they projected back in June.

Guess what that did to stocks, especially after Fed Chair Jerome Powell's press conference around 2:30 Eastern reiterated the "higher for longer" outlook on interest rates?

Still trying to crush an inflation ghost that has long since been diminished. And why President Biden doesn't pressure Powell the way Donald Trump did when the Fed Funds rate wasn't even 1/2 as high as it is now is beyond me.