The Make-or-Break Moment That Will Determine the Economy’s Fate
August 22, 2024 No Comments
Fed Chair Jerome Powell wants to bring inflation down without a recession, and the next few months will be crucial
Fed Chair Jerome Powell wants to bring inflation down without a recession, and the next few months will be crucial
As the evidence keeps pouring in that the U.S. is still mired in an inflationary economy, the possibility that the Federal Reserve will be forced to increase interest rates can no longer be ignored.
Biden Will Still “Betcha” the Fed Will Cut
Someone should let President Biden know that the Federal Reserve is not going to deliver him a politically expedient rate cut.
Central bank officials see higher for longer rates in 2025 and 2026.
Only ten days ago, Federal Reserve Board chairman Jay Powell told congress the Fed is “not far” from rate cuts, adding that he meant “at some point in 2024.” Fortunately, he added the usual “subject to incoming data”.
If you think the Inflation story is over, think again.
PCE numbers came in hot this morning, and the monthly pace of price increases shoots higher.
Bidenomics continues to inflict pain upon Americans, especially those of modest means…
American families have paid and continue to pay a steep price for the greedy indulgence of politicians. Inflation spiked in 2021 and 2022 with sky-high deficit spending as one of the primary drivers.
Matthew Luzzetti, chief U.S. economist for Deutsche Bank, recently estimated if the next Fed loan officers survey shows a 10-percentage-point rise in the share of banks tightening credit, it could lop about half a percentage point from U.S. output – enough to turn expected meager growth into a recession.
The signals from bond markets are still relatively faint, as the more closely watched spread between the two-year yield and the 10-year has remained positive throughout Monday. Still, economists warned the market is signaling recession risk.
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