Stay updated with breaking news from Fomc. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
KUALA LUMPUR: The ringgit retreated from yesterday's gains to end lower against the greenback on Thursday as the minutes from the United States’ Federal Open Market Committee (FOMC) pointed to US interest rates staying higher for longer, an economist said.
Federal Reserve governor Michelle Bowman's prepared remarks to an event in Colorado also came after a mixed employment report on Friday showing that hiring in the United States has slowed but wage gains remained robust. Bowman said she supported the policy-setting Federal Open Market Committee's (FOMC) decision for a rate hike in July given "strong economic data and still elevated inflation."
Richmond Fed President Tom Barkin said the U.S. has avoided a recession because of pandemic-related changes in the economy, but growth is likely to slow.
The Federal Reserve is scheduled to set short-term interest rates again on September 20. The current assessment is that rates will hold steady.
The likelihood of a recession has plummeted from 73% to just 15%, and the FOMC will likely continue raising interest rates—likely pushing mortgage rates up even more.