Posted on 08/23/2024 9:10:12 AM PDT by Miami Rebel
Federal Reserve Chair Jerome Powell signaled Friday that interest rate cuts are coming soon.
"The time has come for policy to adjust," Powell said in his speech during the Kansas City Fed's symposium in Jackson Hole, Wyoming. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."
"Inflation is now much closer to our objective, with prices having risen 2.5% over the past 12 months," he said. "After a pause earlier this year, progress toward our 2% objective has resumed. My confidence has grown that inflation is on a sustainable path back to 2%."
Powell said that the high inflation Americans have experienced in recent years was the result of government spending in response to the COVID-19 pandemic.
He acknowledged that the Fed was wrong about inflation being "transitory," and that the high prices have brought "substantial hardship" to many.
The Fed chair said the economy is growing at a steady pace but that it is clear the labor market is cooling.
"We will do everything we can to support a strong labor market as we make further progress toward price stability," he said. "With an appropriate dialing back of policy restraint, there is good reason to think that the economy will get back to 2% inflation while maintaining a strong labor market."
Throwin’ gasoline on the fire to put it out..................
Inflation will reignite.
Stick with short term and wait for the long term rates to explode higher.
The FED is a joke
It is not the job of the FED to fix interest rates. Their jobs is to control the money supply.
must be an election year or something...
I’m getting 6.7% to 8.4% on 1-4 year maturities.
Translation: can’t let the economy stay bad during an election year while fellow statists are in the WH.
Maybe, but if we can agree that the labor market is weakening (and it is, by a lot) then we can agree that money needs to become easier.
I’m selling treasuries into the rally and buying corporates,
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You are alittle late, the world has been dumping US debt instruments in record amounts. The entire world’s Central Banks have been buying historic amounts of Gold….think they know something Joe six pack doesn’t?
All eyes on the upcoming Brics Summit! A massive reevaluation of Sovereign Gold holdings is imminent….the M-Bridge Unit will strangle the USD….can you say “ Currency Crisis”?
HE IS A DAMNED LIAR.
MILK ALONE HAS GONE UP OVER 2.5%
I’m getting 6.7% to 8.4% on 1-4 year maturities
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In ever decreasing USD’s. Unless you are getting returns that beat the real inflation numbers, USD’s are a losers game.
ELECTION INTERFERENCE, 101.
“See, Harris is working her magic already!” /s
They need to attempt to prop up Kamala’s recession until after the votes are in.
Expected, given the numbers. It’s been a good couple of years for bonds and stocks. How people decide to allocate funds now will be interesting to see.
One of the nastiest effects of inflation is it motivates people to take on high risks to get their return above inflation.
Housing will continue higher, pay will stagnate via AI, outsourcing and black market work aka illegals. We will have a credit event next year regardless of who the president is, more so if Trump is elected.
When you have to cut, CUT; don’t talk. -Tuco
HE IS A DAMNED LIAR.
MILK ALONE HAS GONE UP OVER 2.5%
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Willams who tabulated inflation numbers for .gov for twenty years states real inflation is north of 14 percent.
“ Williams calculates the U-6 rate as it was calculated until December 1993.”
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