Headline Roundup • November 1st, 2023
Fed Again Leaves Interest Rates Unchanged Amid 'Strong' Growth, 'Elevated' Inflation
Economy And Jobs,Interest Rates,Federal Reserve,Jerome Powell,Inflation,Recession,GDP,Unemployment,Banking And Finance
Summary from the AllSides News Team
The Federal Reserve again decided not to raise interest rates, continuing a pause in its financial moves that aimed to fight inflation by raising borrowing costs.
For Context: In a statement, Fed leaders noted “strong” economic growth, an upgrade from previous descriptions; U.S. GDP grew at a 4.9% annualized rate in the third quarter of 2023, a sharp increase from 2.1% in Q2. However, the Fed said inflation — measured at an annualized 3.7% in September, far lower than June 2022’s 9.1% peak — remained “elevated” above its 2% target.
Key Quote: “The process of getting inflation sustainably down to 2% has a long way to go,” Fed Chairman Jerome Powell said, noting that Fed officials might still raise rates higher. “We haven’t made any decisions about future meetings,” he added.
How the Media Covered It: Headlines usually contextualized the rate decision with inflation, financial stress, or strong economic growth. A Fox News (Right bias) headline stood out by describing inflation as “still-high.” Additionally, ABC News (Lean Left bias) used sensational language like “surging” growth and “blistering” pace.
Featured Coverage of this Story
Al Drago/Bloomberg via / Getty Images
The Federal Reserve on Wednesday held interest rates steady for the third time this year even as central bankers confront a surprisingly resilient economy and still too-high inflation.
The widely expected decision left interest rates unchanged at a range of 5.25% to 5.5%, the highest level in 22 years. But policymakers also left the door open to an additional increase before the end of the year amid concerns that inflation "remains elevated."
"In determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time,...
CNBC
The Federal Reserve on Wednesday again held benchmark interest rates steady amid a backdrop of a growing economy and labor market and inflation that is still well above the central bank’s target.
In a widely expected move, the Fed’s rate-setting group unanimously agreed to hold the key federal funds rate in a target range between 5.25%-5.5%, where it has been since July. This was the second consecutive meeting that the Federal Open Market Committee chose to hold, following a string of 11 rate hikes, including four in 2023.
The decision...
Seth Wenig/AP
The Federal Reserve left interest rates unchanged on Wednesday, despite stubborn inflation that has resisted the central bank's fight to cool price increases.
The move allows previous rate increases to take greater hold of the economy and grants the central bank time to assess whether another hike will be necessary.
Once bemoaned as a source of recession worries, the U.S. economy has become a wellspring of good news: blistering growth, robust hiring and consumers opening their wallets for everything from concert tickets to bar tabs.
The strong performance complicates the fight to dial back inflation, posing a...
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