Topline
Ahead of a critical inflation reading, the Federal Reserve on Wednesday indicated it would continue an aggressive interest rate hiking campaign until there was more clear evidence that inflation has come down significantly—though it also acknowledged the uphill battle policymakers are facing to fight spiking prices without plunging the world into a recession.
Federal Reserve Board Chairman Jerome Powell looks on during a hearing before the Senate Banking, … [+]
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ការពិតសំខាន់
នៅក្នុង សេចក្តីសង្ខេប of the Fed’s late-September កិច្ចប្រជុំ, officials acknowledged inflation, which has fallen more slowly than previously expected, remains “unacceptably high” and said tempering the surge would require a period of softer economic growth “very likely” accompanied by a weakening labor market.
They also defended their aggressive policy moves, saying additional hikes would help prevent the “far greater economic pain” associated with high inflation and adding that the cost of taking too little action “likely” outweighs the cost of taking too much.
The release comes after the producer price index, a forward-looking indicator that measures inflation among producers, came in កាន់តែក្តៅ than expected and climbed for the first time in three months, effectively supporting another hefty 75-basis-point hike to an upper level of 3.25% at the Fed’s next meeting in November, according to Comerica Bank chief economist Bill Adams.
“This interest rate is not high by historical standards, but the world changes,” Adams says, noting that debt levels across the economy are much higher than they’ve ever been and that interest rate increases will slow the economy “much more than they used to” as a result.
សាវតាសំខាន់
Skyrocketing prices have forced central banks around the world to reverse pandemic-era policy measures meant to bolster markets—but stubborn inflation has economists worrying officials may fuel a recession while trying to cool the economy. Already, the Fed’s rate hikes have seriously rattled the housing and stock markets. New home sales plunged to a six-year low this summer, and the S&P 500 has shed about 25% of its value this year—reversing nearly two years of gains. Analysts warn the fallout will only get កាន់តែអាក្រក់ ប្រសិនបើប្រទេសជាតិធ្លាក់ចូលទៅក្នុងវិបត្តិសេដ្ឋកិច្ច។
អ្វីដែលត្រូវមើល
Consumer price index data is slated for release Thursday morning, and the Fed’s next two-day policy meeting concludes on November 2, when officials are expected to announce how big the next interest rate hike will be. Comerica forecasts the Fed will authorize another 75-basis-point hike in November, followed by a half-point in December and a quarter-point in February—putting the Fed funds target at a “very restrictive” range of 4.5% to 4.75%.
ប្រធានរិះគន់
As interest rate hikes threaten a global recession, critics have started calling for central banks to reverse their aggressive policy. “The world is headed toward a global recession and prolonged stagnation unless we quickly change the current policy course of monetary and fiscal tightening in advanced economies,” the United Nations warned in a របាយការណ៍ last week, adding that “alarm bells are ringing most” for developing countries loaded with debt and edging closer to a potential default.
អានបន្ថែម
ការឃ្លាំមើលវិបត្តិសេដ្ឋកិច្ច៖ ទីផ្សារខ្លាឃ្មុំកាន់តែស៊ីជម្រៅនៅពេលដែល Fed ផ្លូវការព្រមានថាការដំឡើងអត្រាការប្រាក់នឹងបង្កឱ្យមាន 'ការបរាជ័យ' ជុំវិញសេដ្ឋកិច្ចសកល (ទស្សនាវដ្តី Forbes)
‘Real Danger’ Of Global Recession Intensifies As Rate Hikes Threaten $4 Trillion In Economic Losses (ទស្សនាវដ្តី Forbes)
Source: https://www.forbes.com/sites/jonathanponciano/2022/10/12/fed-minutes-acknowledges-rate-hikes-will-fuel-unemployment-but-warns-inflation-could-cause-far-greater-economic-pain/