Biden Names New Fed Vice Chair as Fedwatch Shows Little Chance to Hike Rates at June Meeting – Economics Bitcoin News

Investors believe it is very likely that the target rate will remain unchanged at the FOMC meeting on June 14, following the US Federal Reserve’s decision to increase the federal funds rate by 25 basis points on May 3. US inflation is raging The Biden administration has appointed Philip Jefferson as its new vice president to replace Lyle Brainard. The US President stated that his candidates will play a “decisive role” in maintaining price stability and supervising the country’s financial institutions.

Fedwatch indicates a low chance of a price hike

Just over a week ago, on May 3, 2023, the US central bank raised the federal funds rate to 5.25% after raising the interest rate by a quarter point. Fed Chair Jerome Powell was quick to stress that inflation remains a major concern and that the FOMC was committed to bringing the inflation rate down to the 2% target. However, the most recent Consumer Price Index (CPI) report, released on May 10, reveals that over the past 12 months, “the all-items index has risen 4.9%.”

Last Friday was a rough day for the stock market, as the S&P 500, Dow Jones Industrial Average, Nasdaq Composite, and Russell 2000 Index all closed in the red. The cryptocurrency economy is also seeing a downward trend, while precious metals such as gold and silver are trading sideways.

The upcoming FOMC meeting is shaping up to be concerning, as the latest data from the CME Fedwatch tool indicates that there is an 84.5% chance that the interest rate will remain unchanged. However, there is also a small chance of a quarter-point rate hike to 5.50%, with Fedwatch showing a probability of about 15.5%.

Biden names new Fed vice chair as Fedwatch shows little chance of rate hike at June meeting
CME Group’s Fedwatch tool.

Biden’s new Fed vice chairman faces high expectations

Forbes journalist Simon Moore reports that most policymakers favor keeping interest rates at their current level, according to the most recent data from March. However, Moore says some believe rates should be closer to 6%, and one participant predicts that rates will not remain at their current level by the end of the year.

According to the reporter, the question on every market investor’s mind is whether or not the central bank will focus on this year’s pivot. In addition to expectations regarding the upcoming FOMC meeting, President Joe Biden also made some major changes to the Fed’s leadership.

With fresh blood at the helm, many are wondering how this will affect the central bank’s policies and priorities going forward. Powell will now get a new second position as President Biden has named Philip Jefferson as his new vice president. Biden stated that the Senate confirmed Jefferson with a strong bipartisan vote of 91 to 7 and stressed that he was looking forward to his “quick confirmation” as vice president.

Reports indicate that Jefferson is in line with Powell’s efforts to curb inflation and is unlikely to back down from the Fed’s current policies.

tags in this story

Biden, Central Bank, Federal Reserve, Fedwatch, Fedwatch Tool, Financial Markets, FOMC Meeting, Inflation, Interest Rates, Investors, Jerome Powell, Joe Biden, Philip Jefferson, Policy Making, US Central Bank, US Federal Reserve

What do you think about the appointment of Philip Jefferson as the new Vice Chairman of the Federal Reserve regarding the future of central bank policies? Share your thoughts on this topic in the comments section below.

Jimmy Redman

Jamie Redman is the Chief News Officer at News and a financial and technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for News about disruptive protocols emerging today.

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