The stock market jumped, seeing a leveling off of rate hikes coming in the near future, with the DOW Jones Industrial Average exceeding 33,000 at one point. And then Powell spoke to reporters after the Fed's decision was made.
The Fed again raises its main policy rate by 75bps, lifting fed funds to 3.75-4%. "Ongoing increases" will be appropriate to get rates to a "sufficiently restrictive" level, but the future pace will reflect the "cumulative tightening" delivered so far this year and policy lags pic.twitter.com/5uAfKbDp3X— Colby Smith (@colbyLsmith) November 2, 2022
And the result on Wall Street.... housing prices starting to fall. So why keep on tightening at such a heavy pace?
The 3 takeaways from Powell's press conference:— Nick Timiraos (@NickTimiraos) November 2, 2022
1) The Fed could step down to a slower pace in Dec even if inflation data don't improve much
2) If there had been new estimates of the terminal funds rate released today, they would have moved up
3) Not ready to talk about a pause
Yeah, we can't have everyday Americans continuing to have money in their pocket and the country having more than 10 million job openings. That's terrible! We need to restore balance and allow the corporations that are making record profits have a better position to negotiate with the plebes!
It's rare to see the Fed speaking this clearly about how it works, but here the president of the Kansas City branch says Americans have too much money and that's a problem the Fed's going to solve. https://t.co/s9rG1TvEn9 pic.twitter.com/nM3NZ99xKZ— Jon Schwarz, Mayor, Arkham MA (@schwarz) November 2, 2022
It is infuriating. And it really tells you what the banksters fear most - workers with options. They'd rather wreck the economy than have everyday Americans actually gain ground on oligarchs like them.
Disastrous. A Trump appointee who Biden kept onboard is set on wrecking Biden’s jobs record and maybe giving us a horrible recession. https://t.co/nKNxx5eMJp— Mehdi Hasan (@mehdirhasan) November 3, 2022
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