The Federal Reserve admitted yesterday that progress on inflation has stalled and that it will take longer for the Fed to achieve the confidence it needs to cut interest rates.
The Fed chair does not see a rate hike coming but he acknowledged that recent setbacks on inflation mean the current rate policy will last for longer than anticipated.
Federal Reserve officials agreed on Wednesday to hold interest rates steady for the sixth consecutive meeting, signaling that it is willing to keep rates at the highest level in more than two decades for longer than previously expected and noting that progress on bringing down inflation has stalled.
The odds of a Fed cut are evaporating amid the blaze of hotter than expected inflation figures.
The PCE index shows that progression on bringing down inflation has stalled.
On Thursday’s broadcast of the Fox News Channel’s “Your World,” Minneapolis Federal Reserve Bank President Neel Kashkari stated that stimulus spending was “a contributor to the high inflation that we’ve seen.” And “the spending on infrastructure, the spending on new chip
Employment grew much more than expected for the third month in a row.
The Atlanta Fed said inflation is falling much more slowly than expected, so the Fed will probably not cut rates until the end of the year.
The potential that the Fed’s next move is up instead of down is arguably the most underpriced risk in the market.
The JOLTS report casts further doubt on the need for a rate cut from the Federal Reserve in the months ahead.
The latest dispatch from the Federal Reserve left the expected path of interest rates over the next year unchanged. Yet it hinted at a potentially tumultuous shift beneath the calm facade, a shift to a higher rate of interest over the long term.
Fed officials now expect it will take slightly higher interest rates to get inflation down to their two percent target and to keep it there.
Fed officials continue to expect three cuts this year while saying they need move evidence inflation is headed lower before they start cutting.
Breitbart economics editor John Carney said Tuesday on Fox Business Network’s “Kudlow” that the latest inflation numbers meant the Federal Reserve could not potentially ease interest rates.
But January’s huge number was revised down from 353,000 to 229,000.
Job openings, hires, and quits all indicate a strong labor market, putting the case for interest rate cuts into doubt.
Raphael Bostic warned on Monday that a premature Fed cut could spark an economic boom that would send inflation higher again.
Breitbart Economics Editor John Carney said Thursday on Fox Business Network’s “Kudlow” that the Biden administration is undermining the Federal Reserve’s attempts to bring down inflation.
Super core inflation exploded higher in January.
Fed Governor Christopher Waller argues that there is no reason to fear that we are sailing into a recession, which is the thing that usually prompts rate cuts from the Fed.
There’s no sign of cooling in the labor market, putting rate cuts into doubt.
The decision of the Fed to start cutting interest rates bears a strong resemblance to the decision to marry. It can be reversed but only with a great deal of awkwardness, some economic difficulty, and often a reputational cost.
The evidence is mounting, as solid and as undeniable as the ground beneath our feet. Inflation is here, it’s real, and it’s time to pay attention.
Inflation, having long since overstayed its welcome, announced on Tuesday that it was just getting comfortable.
The Federal Reserve justifiably received a lot of criticism for its tardy response to the surge of inflation. Now its critics accuse it of being too hesitant to lower interest rates.
Monetary policy may be a dead end. Perhaps it’s time to start looking elsewhere for what is really driving inflation and growth.
The economy appears to be able to operate at a high rate of growth with interest rates that would have been seen as highly restrictive in the pre-pandemic era.
So, what does it sound like when doves cry?
Fed officials continue to push back against the market’s forecast for an aggressive cutting cycle this year.
The most underpriced risk in financial markets right now is a rate hike from the Federal Reserve.
The possibility of an interest rate hike is “the most underpriced risk in the market right now,” Breitbart Economics Editor John Carney told Fox Business host Larry Kudlow.
The Bond Market Is Like a Dog Walking on Two Legs We have it on the authority of James Boswell that in the summer of 1763 Samuel Johnson said that “a woman’s preaching is like a dog’s walking on his
Federal Reserve Chair Jerome Powell admitted that he was wrong to expect inflation would be transitory when it started to rise three years ago. Powell said that “in the fourth quarter of ’21, it became clear that inflation was not
The surprisingly strong January jobs report reflects real employment and productivity growth and not just growth in government or government-adjacent hiring, Breitbart Economics Editor John Carney told Fox Business host Larry Kudlow.
The Fed Fights Back The Federal Reserve delivered a shock on Wednesday by announcing that it does not anticipate cutting rates until it gets more confident that inflation is moving toward two percent. “The Committee does not expect it will
“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” the Fed said
The Shaky Edifice of Improved Consumer Confidence Americans are feeling better about the economy than they have in years. Or at least Democrats are. Consumer confidence—as measured by the Conference Board’s monthly survey—surged to a two-year high in January, the
Will the Fed defend the position it staked out in December or capitulate to the view of bond traders?
The Federal Reserve has a lot less influence over business activity than is commonly thought.
The economy is signaling that it does not need a rate cut to keep growing. The question is whether the Federal Reserve is listening.
