Is the Federal Reserve done raising interest rates?
Aug 11, 2023
Is the Federal Reserve done raising interest rates?
Officials with the Federal Reserve won’t convene again until September after hiking interest rates last month for the 11th time in the past year and a half. Jeanna Smialek, who covers the Fed and the economy for The New York Times, joined CBS News to discuss whether there will be another rate increase.https://cbsn.ws/1PlLpZ7c https://cbsn.ws/1Xb1WC8 https://www.instagram.com/cbsnews/ https://facebook.com/cbsnews https://twitter.com/cbsnews https://cbsn.ws/1RqHw7T https://bit.ly/2OiW1kZ [email protected]
Content
2.48 -> you know what that music means time to
4.92 -> talk money Federal Reserve officials
7.02 -> aren't convening again until September
8.94 -> after hiking interest rates last month
11.16 -> but as this meeting approaches Americans
13.44 -> are left to wonder has the central
15.24 -> bank's interest rate hiking campaign
17.6 -> finally reached an end as you all know
20.46 -> by now the Federal Reserve has raised
22.14 -> interest rates what some 11 times in the
24.18 -> span of nearly a year and a half last
26.1 -> month the federal funds rate hit its
28.019 -> highest level in 22 years so who might
31.32 -> be able to break this all down for us
33 -> Gina smilek she covers the Federal
34.8 -> Reserve and the U.S economy the New York
36.899 -> Times it can help us better understand
38.16 -> what might happen next uh Gina how have
41.7 -> just for our regular viewers will know
43.92 -> this and I'm sure they've felt it but
45.239 -> break down from your point of view how
47.64 -> all of these interest rate hikes have
49.62 -> impacted the US economy
52.399 -> quite significantly we've really seen a
55.32 -> pretty marked slow down in the housing
57.3 -> market in particular you know we have
59.879 -> seen new sales really pull back quite a
62.64 -> bit we've seen prices for some existing
64.799 -> homes climb much more slowly and so
67.439 -> we've that's sort of the clearest place
69.18 -> but we've also seen you know slowing in
71.7 -> demand for some new vehicles we've seen
74.52 -> a real slowdown in business applications
76.74 -> in some sectors you know it's pretty
78.479 -> clear that this is starting to trickle
80.04 -> out through the economy cooling off
81.9 -> growth a little bit around the edges now
84.119 -> what's interesting is the Labor
85.799 -> Department releases its July consumer
88.32 -> price index report tomorrow so how
91.5 -> significant will it be to the Federal
93.96 -> Reserve and future interest rate
96.119 -> decisions or is it just a single data
98.579 -> point and won't necessarily budge them
100.32 -> either way
102.119 -> no you know I think
104.4 -> I think for it but a very challenging
106.02 -> one to read so what we're expecting is
108.42 -> actually a slight pickup in overall
110.28 -> inflation but that's really going to be
111.96 -> driven by what we in economics call a
114.84 -> base effect which just means in Lay
117.299 -> terms that you're measuring inflation
119.22 -> against a pretty weak reading from last
121.14 -> July and it's going to make it look
122.52 -> artificially high this time but what
125.28 -> we're going to see in the underlying
127.14 -> details the part that the FED is really
128.819 -> looking at
129.84 -> likely a continued slowdown in inflation
132.42 -> and if that happens as expected this is
135.48 -> probably very good news for Central
137.16 -> bankers at the fed and so where's the
140.52 -> bottom line for you then do you believe
143.04 -> the Federal Reserve is finished raising
146.22 -> rates for the year and if not Gina I'm
149.099 -> going to hold you to this how many more
150.959 -> hikes do you expect to see
153.92 -> I think it is very much up in the air at
157.379 -> the moment I think that they are still
158.76 -> debating I think they're going to be
159.72 -> watching to see what happens with not
161.64 -> just this inflation report but also the
163.319 -> next one before they make those
164.519 -> decisions I do think that debate though
167.459 -> is really about one more rate increase
169.019 -> or nothing at all you know we saw John
171.239 -> Williams the president of the New York
172.56 -> fed make that very clear in an interview
174.42 -> I did with him actually last week and so
177.42 -> I think that we can take matters where
179.099 -> that that is basically where we are now
181.08 -> we're talking about potentially one more
182.519 -> quarter point increase we're very close
184.379 -> to the end of the road
185.94 -> that is news I think our viewers will
188.4 -> enjoy hearing Gina smilik great to have
190.8 -> you with us today thanks very much
Source: https://www.youtube.com/watch?v=hrI8Ev_HtpY
