Posted on 06/16/2023 11:02:55 AM PDT by Kaiser8408a
Governor Waller cites slow progress on core inflation Richmond Fed chief Barkin says he’s comfortable doing more Two Federal Reserve officials said the central bank may have to raise interest rates further to tame price pressures that in some sectors aren’t showing much sign of easing.
Fed Governor Christopher Waller said Friday headline inflation has been “cut in half” since peaking last year, but prices excluding food and energy (aka, CORE inflation) has barely budged over the last eight or nine months.
The Federal Open Market Committee paused its series of interest-rate hikes Wednesday, but policymakers projected rates would move higher than previously expected in response to surprisingly persistent price pressures and labor-market strength.
The consumer price index this week showed headline inflation slowed, but core prices excluding food and energy continued to rise at a pace that’s concerning for Fed officials. Employers continued adding jobs at a rapid clip in May, and job openings climbed in April, recent data showed.
Barkin warned that prematurely loosening policy would be a costly mistake.
“I recognize that creates the risk of a more significant slowdown, but the experience of the ’70s provides a clear lesson: If you back off inflation too soon, inflation comes back stronger, requiring the Fed to do even more, with even more damage,” he said. “That’s not a risk I want to take.”
Policy Report Separately, the Fed released a new report Friday that said tighter US credit conditions following bank failures in March may weigh on growth, and that the extent of additional policy tightening will depend on incoming data.
Fats Waller
and Elen Barkin.
(Excerpt) Read more at confoundedinterest.net ...
He will right after trump or a republican wins.
Anyone not in a money-market fund,should be. The interest I’m getting in my T. Rowe Price MM fund has skyrocketed since the Fed raised the rate.
Banks are a business like every other business.
Interest rates need to be at 5% for deposits and around 8% for loans just to keep things stable and not in need of "stimulus".
Stimulus is a very bad thing. It results in false and weak economic foundations.
5.06 this week.
Point of irony here. In 1969 my passbook savings account for my newspaper delivery, grass cutting, snow shoveling, allowance deposits was 5%.
(inflation has been “cut in half” since peaking last year)
There are lies, damned lies and statistics.
(“There are three kinds of lies: lies, damned lies, and statistics.”)
Raise some rates pay me some more money go for it
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.