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Episode 940Jun 8, 2023

A Fedspeak dilemma: to “skip” or “pause” rates?

Reading the Fed’s tea leaves.

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Fed Chair Jerome Powell has been used the phrase "financial conditions" 29 times in his last three press conferences.
Fed Chair Jerome Powell has been used the phrase "financial conditions" 29 times in his last three press conferences.
Saul Loeb/AFP via Getty Images

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Ahead of their upcoming monthly meeting, Federal Reserve officials have hinted at possibly holding interest rates steady. And they’ve been using a few terms to describe the move — a “skip,” a “pause” and a “hold.” One listener called in to ask: What’s the difference? We’ll get into it and answer more of your questions, like why monetary policy tools are so blunt and the possibility of a common currency for BRICS countries. Plus, why your favorite radio program asks for money.

Here’s everything we talked about today:

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The Team

A Fedspeak dilemma: to “skip” or “pause” rates?