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U.S. Fed may soon end interest rate hikes

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The central bank whose decisions impact so much of the global economy has been closely watched for signs on monetary policy direction

The U.S. Federal Reserve may be nearing the end of its monetary tightening policy, several bank officials said on Monday, however they also indicated a few more rate rises will still be in store for the year.

The Fed has already implemented a total of 5 percentage points in rate hikes since March 2022 to combat the highest U.S. inflation in four decades.

In their most recent meeting, policymakers chose to postpone a rate increase to assess the impact of previous hikes on borrowing costs. Nonetheless, most officials anticipate at least two more increases by the end of 2023.

San Francisco Fed President Mary Daly expressed a common sentiment among her peers, stating that a couple more hikes may be necessary this year to bring inflation back in line with the Fed’s target of 2%.

Daly also acknowledged that the risks of doing too little are gradually aligning with the risks of overdoing rate hikes as the Fed approaches the final phase of its tightening cycle.

She emphasised the importance of data-dependence and supported the cautious approach taken in June, allowing for a more thorough assessment of economic indicators.

Daly highlighted the significance of incoming data in determining future policy decisions, suggesting that the Fed may adjust its approach based on evolving circumstances.

The expectation is that the Fed will raise rates at their upcoming meeting, potentially bringing the policy rate to the range of 5.25%-5.50%.

However, the timing of subsequent rate hikes is less certain, with possibilities ranging from the September meeting to November or even a decision to maintain rates and allow inflation to gradually ease.

Fed Chair Jerome Powell has previously noted that he cannot rule out consecutive rate hikes to address stubbornly high inflation.

Although inflation, as measured by the personal consumption expenditures index, has declined from its peak of 7% last year to 3.8% in May, it remains nearly twice the Fed’s target.

The ultimate path of rate increases will depend on future economic data and its implications for inflationary pressures. The Fed aims to strike a balance between addressing inflation concerns and avoiding excessive tightening that could hinder economic growth.

“We still have a bit of work to do,” Fed Vice Chair for Supervision Michael Barr said on Monday at a separate event. “I’ll just say for myself, I think we’re close.”

 

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Nvidia surpasses Microsoft as the most valuable company in the world

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Nvidia has emerged as the world’s most valuable company, surpassing Microsoft with a market value of over $3.3 trillion.

This shift comes on the heels of Nvidia’s consistent growth in the semiconductor sector and its strategic advancements in artificial intelligence and gaming technologies.

This milestone marks a significant validation of Nvidia’s aggressive expansion and innovation strategies under CEO Jensen Huang, who has steered the company towards dominance in high-performance computing.

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Finance expert empowers his social audience with accessible wealth tips

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The right strategy can change the game for your financial freedom. Meet the advisor making his tips accessible to all.

Wyld Money dives into the world of financial freedom. Whether you’re a seasoned investor or just getting started, join us for actionable tips and tricks to unlock your earning potential, and retire on your own terms.

In this episode, Mark is joined by James Wrigley, Financial Advisor at First Financial. #wyld money #trending

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It takes a village: coordinated financial teams prove paramount to maximising wealth

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The pursuit of wealth is often faced by significant challenges including debt, lifestyle costs, and burnout – so what methods can help overcome these challenges?

Maximising financial opportunities involves a suite of tasks, from leveraging favourable loan rates, strategic tax planning, and coordinated financial advising.

Mark Wyld from MW Wealth joins to discuss more. #featured

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