AMT comments on Fed's interest bump
For the first time in Federal Reserve Chair Kevin Warsh’s tenure, the committee voted to raise interest rates by a quarter-point to a target range of 3.75% to 4.00% in a move that was all but certain after a flat CPI inflation reading the week of Sept. 7.
The unanimous decision was a welcome return to normalcy after dissents were elevated over the past few meetings.
The quarterly summary of economic projections (SEP) shows that inflation is not likely to reach the 2% target until 2029. Compared to the June meeting, the committee expects stronger growth, less unemployment, and slightly higher inflation in the remainder of 2026. The median projection of longer-term interest rates increased by one-tenth to 3.2% compared to the prior SEP.
“Consumer demand has proven resilient, and while [the Sept. 16] rate increase can tamp down inflation coming from overheated demand, it can also complicate efforts to alleviate supply-driven inflation,” said Christopher Chidzik, principal economist of AMT – The Association For Manufacturing Technology. “...The move by the Fed today is a step toward improved price stability that will allow manufacturers to better plan capital investments and production cycles to alleviate supply pressures across the economy.”
INDUSTRIAL SUPPLY MAGAZINE
The September/October issue of Industrial Supply magazine features an in-depth cover story about Rotator Products. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
