Posted on 06/04/2022 4:23:30 PM PDT by EBH
Cleveland Federal Reserve President Loretta Mester said Friday that she doesn't see ample evidence that inflation has peaked and thus is on board with supporting a series of aggressive interest rate increases.
"I think the Fed has shown that we're in the process of recalibrating our policy to get inflation back down to our 2% goal. That's the job before us," Mester said in a live interview on CNBC's "The Exchange."
"I don't want to declare victory on inflation before I see really compelling evidence that our actions are beginning to do the work in bringing down demand in better balance with aggregate supply," she added.
Mester spoke the same day the Bureau of Labor Statistics reported that nonfarm payrolls rose by 390,000 in May, and, importantly, that average hourly earnings had increased 0.3% from a month ago, a bit lower than the Dow Jones estimate.
While other recent data points have shown that at least the rate of inflation increases has diminished, the policymaker said she will need to see multiple months of that trend before she'll feel comfortable.
"It's too soon to say that that's going to change our outlook or my outlook on policy," Mester said. "The No. 1 problem in the economy remains very, very high inflation, well above acceptable levels, and that's got to be our focus going forward."
(Excerpt) Read more at cnbc.com ...
Stop spending and stop printing money
Right. The Fed can’t stop this, even if the kill investment stone dead with high interest rates. FISCAL restraint is absolutely required - but won’t happen. We Are So Screwed.
Great. Throw us into a depression. It’ll help
Translation: "People see that we are indecisive and don't know what we're doing."
Herein the problem is exemplified.
This dumb ass thinks a half point per cycle is “aggressive”.
The nation is doomed.
Because jacking rates up worked so well in the Jimmy Carter days. 🙄
Half-points are only band-aids on a massive cut.
It will take months for them to even start having much impact on the run-away inflation.
They should have started them 16 months ago — when Biden took office, but they feared it might make inflation ‘his’ problem. Well, now it IS his problem.
Actually, according to https://www.usdebtclock.org/, we did.
US Federal Spending is decreasing and the budget deficit is decreasing.
Has been for at least a few months now.
I just went to a Jimmy John’s in Reno. It was closed today because of staff shortages. Meanwhile there are bums holding signs begging for money on nearly every commercial area corner. Maybe when people stop giving them money they will go back to work. It may even save them from a drug overdose.
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Bingo. Lack of fiscal restraint during COVID was a bigger problem than the 0% interest rate.
I’m sure “Loretta” has a firm grip on the situation.
Her and Yellen. What a brain trust we’ve got running things. Into the dirt.
We have instant price discovery and instant quality comparisons for almost every product we buy.
If just 10% of consumers switch to a new product or to a new supplier, every manufacturer must adjust price and quality or be quickly pushed out of the market.
In my opinion, the World Wide Web has been exclusively responsible for moderate inflation since the early 2000s.
Because of the W.W.W., we may be able to return to moderate inflation much more quickly than many experts predict.
The interest on my savings accounts don’t appear to be keeping pace...
You operating on the assumption that they used to work in the first place.
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