Federal Reserve Chair Jerome Powell speaks after Fed holds interest rates steady — 12/13/23

Federal Reserve Chairman Jerome Powell delivers remarks following the Federal Reserve's two-day policy meeting on Wednesday. The central bank on Wednesday held its key interest rate steady for the third straight time and set the table for multiple cuts to come in 2024 and beyond.

With the inflation rate easing and the economy holding in, policymakers on the Federal Open Market Committee voted unanimously to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

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Federal Reserve Chair Jerome Powell speaks after Fed holds interest rates steady — 12/13/23

[debbiemacnichol]

America is presently besieged by the hydra-headed evil combo of inflation and recession. The worst aspect about this crisis is that consumers are piling up credit card debt. Credit card debt increased by 20% in April alone, while interest rates have doubled in a year. Inflation is so severe that customers are essentially going into debt to buy basic essentials. The collapse has certainly begun.

[kaylawood]

The stock market has been on a tear over the last month on hopes for a dovish pivot from the Fed, but investors like me have seen this movie before whereby i'm left pondering if to sell off 30% of my $450k portfolio which comprised of plummeting stocks or hold on.

[stephenbrown]

Inflation can never return to 2% ever in our lifetimes…with a national debt increasing at 1 trillion every three months.Last 1 trillion took 95 days, currently 913 billion increase in last 86 days.

[maxique]

the FED is a disappointment, why discuss rate cut when everything about the economy is still raising?

[stephenbush]

I think Powell SHOULD have hiked rates again. Inflation is still very dangerous. It has already wrecked havoc for average earners and retired people. What we really need is deflation to bring homes, real estate, cars, and consumer goods back in line with reasonable prices. Higher will will force that and benefit retired people who are living off their savings in the meantime! Of course the rich hate the deflation but they like the inflation. To average people however, most people, inflation is devastating and deflation is a sigh of relief. Powell should have put the weight of his foot heavier on the neck of inflation and not released the pressure too soon. High and higher interest rates will bring big ticket prices of anything bought on time back down. That is what most people need! Inflation in these items was CAUSED mostly by interest rates TOO LOW. When rates are too low sellers can and WILL raise their prices on the asset itself because lower rates hold down payments. But when interest rates go back up people can't afford the payments on those high asset prices, therefore the prices have to come down. What we DON"T WANT now are lower interest rates. Prices of homes, cars etc will continue to rise out of reach of most people and inflation in other things will take off again even higher if rates are lowered! Powell should have raised the rate again! He is caving to pressure from people who don't care about the average and poor masses, though he SAYS he knows their plight? BS!

[pt]

When he said pain last year it means pain for the middle class not the rich !

[js-gchk]

dude makes $200k a year to say the same thing over and over again

[jeffreylindley]

They are trying to get rates down before the government needs to refi 7.5T in bonds next year. Inflation is now not the top priority.

[Dohair]

The national average in the past 30 years has been 7 +% while the 30 year median home price was $130k. My first home was $132k at a 5.8% rate when I was 25. On my own, one single income. While I agree rates do affect what you pay on a home in the long run. The prices are not reflecting today’s income vs down payment and the cost of taxes with insurance. When home prices are lower so are taxes and insurance and no PMI. Regardless of price vs interest I think we can all agree the last 3 years has been ridiculous. Values need to be a YOY from 2019 prices 3-4% and rates between 5-6%

[CoverBydAn]

“Inflation is coming down, but price levels are not coming down.” True statement! Lower Inflation just means prices have stopped growing quickly. Great response. Powell understands whats going on

[dprhythms]

They haven't quite recovered all the pandemic stimulus. All that liquidity has to find its way home. Corporations don't like inflation if it has to be fought with high interest rates because it makes money more expensive. Rather than pay for their money like everyone else, corporations get mad and want to take their ball home. Borrowed money is the lifeblood of corporations.

[chuckrennert]

When Americans bank balance is back to .37 cents again, they will cut rates again! Lol

[RRTXR]

What is the motivation to cut rate next year ? Are you seeing the economy turning bad next year ?

[leecaryer]

A reading of Fed policy shows that 2 percent was once the ceiling. Now it is an unreachable goal, even though the definition of inflation has been redefined multiple times.

[danaism]

He keeps saying 2%, 2%, 2%. We'll never see it!

[t-bone]

crank up the volume on future FOMC live streams would you?

[gingerlox]

Why do they exclude food and energy from inflation calculations? Wouldn’t considering these numbers help direct the path they need to take if it’s all about decreasing pain in the economy? People are putting things on credit because prices are so high and people can’t pay the bill because the interest is so high. Just hike to the point that people break to force adjustment in prices and then maybe people will be able to afford to pay cash for necessities. This just makes no sense and this would be the question I would be asking if I was in there. 🧐

[peters]

Ne’er a question or answer regarding the global economy as effected by the almighty dollar’s global reserve status.

[Jorgeeduardo]

Please someone should help here... I lost $8, 400 on live trade, I thought live trade is the same as demo trade because I was winning with my demo account. Please this is quite annoying and disappointing, what should I do please.

[waltp]

The problem is the unforeseen developments. I do not see prices coming down. Just a few areas with overpriced houses. What about gas? Oil is $6979 a barrel. Why is gasoline still around $5? Used to have $2.50 gasoline with $75 oil.
Food has not come down. Meat is ridiculous. I think we are stuck with these high prices forever.
It is the high prices which is cooling the economy, not interest rates. People are not buying.