IS IT A 'SKIP' OR A 'PAUSE'? FEDERAL RESERVE WON'T LIKELY RAISE RATES NEXT WEEK BUT MAYBE NEXT MONTH
Techlife News|Techlife News #606
Don't call it a "pause."
IS IT A 'SKIP' OR A 'PAUSE'? FEDERAL RESERVE WON'T LIKELY RAISE RATES NEXT WEEK BUT MAYBE NEXT MONTH

When the Federal Reserve meets next week, it is widely expected to leave interest rates alone after 10 straight meetings in which it has jacked up its key rate to fight inflation.

But what might otherwise be seen as a "pause" will likely be characterized instead as a "skip." The difference? A "pause" might suggest that the Fed may not raise its benchmark rate again. A "skip" implies that it probably will just not now.

The purpose of suspending its rate hikes is to give the Fed's policymakers time to look around and assess how much higher borrowing rates are slowing inflation. Calling next week's decision a "skip" is also a way for Chair Jerome Powell to forge a consensus among an increasingly fractious committee of Fed policymakers.

One group of Fed officials would like to pause their hikes and decide, over time, whether to increase rates any further.

But a second group worries that inflation is still too high and would prefer that the Fed continue hiking at least once or twice more - beginning next week.

A "skip" serves as compromise.

When the Fed chair speaks at a news conference next week, he will likely make clear that the central bank's key rate - which has elevated the costs of mortgages, auto loans, credit card and business borrowing- may eventually go even higher.

The clearest signal that a skip, rather than a pause, is in the works will likely be seen in the quarterly economic projections. Those may show that officials expect their key rate to rise a quarter-point by year's end - to about 5.4%, above their estimate in March.

"That's probably the only way to keep the committee cohesive in an environment where they have seem to have somewhat broadening disagreements," said Matthew Luzzetti, chief U.S. economist at Deutsche Bank Securities.

هذه القصة مأخوذة من طبعة Techlife News #606 من Techlife News.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة Techlife News #606 من Techlife News.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من TECHLIFE NEWS مشاهدة الكل
SOUTH KOREA FINES META $15 MILLION FOR ILLEGALLY COLLECTING INFORMATION ON FACEBOOK USERS
Techlife News

SOUTH KOREA FINES META $15 MILLION FOR ILLEGALLY COLLECTING INFORMATION ON FACEBOOK USERS

South Korea’s privacy watchdog this week fined social media company Meta 21.6 billion won ($15 million) for illegally collecting sensitive personal information from Facebook users, including data about their political views and sexual orientation, and sharing it with thousands of advertisers.

time-read
2 mins  |
November 09, 2024
CHINESE ONLINE RETAILER TEMU FACES EUROPEAN UNION INVESTIGATION INTO ROGUE TRADERS AND ILLEGAL GOODS
Techlife News

CHINESE ONLINE RETAILER TEMU FACES EUROPEAN UNION INVESTIGATION INTO ROGUE TRADERS AND ILLEGAL GOODS

Chinese online retailer Temu is facing a European Union investigation over suspicions it’s failing to prevent the sale of illegal products, the 27-nation bloc’s executive arm said.

time-read
2 mins  |
November 09, 2024
CORNING FACES EU ANTITRUST SCRUTINY OVER GORILLA GLASS DEALS WITH PHONE MAKERS
Techlife News

CORNING FACES EU ANTITRUST SCRUTINY OVER GORILLA GLASS DEALS WITH PHONE MAKERS

Corning is facing European Union antitrust scrutiny after the bloc’s watchdog said this week it’s investigating the speciality glass maker’s exclusive deals for its Gorilla Glass used in cellphones.

time-read
1 min  |
November 09, 2024
NEW CEO AT CVS BEGINS TO BUILD HIS TEAM WITH A GOAL OF REVIVING THE STRUGGLING HEALTH CARE GIANT
Techlife News

NEW CEO AT CVS BEGINS TO BUILD HIS TEAM WITH A GOAL OF REVIVING THE STRUGGLING HEALTH CARE GIANT

CVS Health fell short on third-quarter profit, but it posted strong sales and the health care giant shook up leadership under new CEO David Joyner after a rough year that has sent shares plunging.

time-read
2 mins  |
November 09, 2024
NINTENDO REPORTS LOWER PROFITS AS DEMAND DROPS FOR ITS AGING SWITCH CONSOLE
Techlife News

NINTENDO REPORTS LOWER PROFITS AS DEMAND DROPS FOR ITS AGING SWITCH CONSOLE

Nintendo, the Japanese video game maker behind the Super Mario franchise, said Tuesday that its profit fell 60% in the first half of the fiscal year, as demand waned for its Switch console, now in its eighth year since going on sale.

time-read
1 min  |
November 09, 2024
AS THE DATA CENTER INDUSTRY BOOMS, AN ENGLISH VILLAGE BECOMES A BATTLEGROUND
Techlife News

AS THE DATA CENTER INDUSTRY BOOMS, AN ENGLISH VILLAGE BECOMES A BATTLEGROUND

Originally built to store crops from peasant farmers, the Tithe Barn on the edge of the English village of Abbots Langley was converted into homes that preserve its centuries of history.

time-read
4 mins  |
November 09, 2024
THE BEST SMALL SUVS FOR CITY DRIVING
Techlife News

THE BEST SMALL SUVS FOR CITY DRIVING

SUVs are popular in part due to their elevated ride height, commanding view of the road, and roomy interiors.

time-read
3 mins  |
November 09, 2024
GOOGLE MAPS ADDS AI FEATURES TO HELP USERS EXPLORE AND NAVIGATE THE WORLD AROUND THEM
Techlife News

GOOGLE MAPS ADDS AI FEATURES TO HELP USERS EXPLORE AND NAVIGATE THE WORLD AROUND THEM

Google Maps is heading down a new road steered by artificial intelligence.

time-read
2 mins  |
November 09, 2024
TESLA SHARES SOAR 14% AS TRUMP WIN SETS STAGE FOR ELON MUSK'S ELECTRIC VEHICLE COMPANY
Techlife News

TESLA SHARES SOAR 14% AS TRUMP WIN SETS STAGE FOR ELON MUSK'S ELECTRIC VEHICLE COMPANY

Shares of Tesla soared following an election that will send Donald Trump back to the White House, an outcome that has been strongly backed by CEO Elon Musk in the closing months of the race.

time-read
1 min  |
November 09, 2024
APPLE BREAKS OUT OF RECENT SALES SLUMP AS IT GEARS UP TO MAKE ITS LEAP INTO THE AI CRAZE
Techlife News

APPLE BREAKS OUT OF RECENT SALES SLUMP AS IT GEARS UP TO MAKE ITS LEAP INTO THE AI CRAZE

Apple snapped out of a recent iPhone sales slump during its summer quarter, an early sign that its recent efforts to revive demand for its marquee product with an infusion of artificial intelligence are paying off.

time-read
2 mins  |
November 09, 2024