Posted on 07/11/2022 3:19:24 PM PDT by RomanSoldier19
The U.S. economy is healthy and shows little sign of an imminent recession, and can withstand higher interest rates, St. Louis Federal Reserve president James Bullard said Monday.
Financial markets are flashing signs that an economic downturn could arrive sometime next year, as Americans grapple with the highest inflation in four decades and the Federal Reserve pushes borrowing costs higher. But Bullard said in an interview with The Associated Press that the central bank wouldn't have to drive the economy into a recession or significantly raise unemployment to bring inflation down to its 2% target.
“Now we have lots of inflation, but the question is, can we get (inflation) back to 2% without disrupting the economy? I think we can," he said.
Bullard's optimism coincides with a rapid pace of interest rate increases by the Fed, intended to combat the highest U.S. inflation in 40 years.
Higher rates limit the ability of consumers and businesses to borrow and spend, which can cool growth and inflation. But they also carry the risk of tipping the economy into a downturn.
Consumer prices rose 8.6% in May compared with a year ago, and a government inflation report Wednesday could show that they've ticked higher.
(Excerpt) Read more at abcnews.go.com ...
The U.S. economy is healthy and shows little sign of an imminent recession, and can withstand higher interest rates
Lol
“When things are important, you have to lie.” - One of the head central bankers in Europe.
Someone’s nose is growing
Nothing to see here, people. Move along.
Won’t the higher interest rates just add to the inflation until the recession hits?
The economy can survive but the populace would starve. I am not an economist but I thought it was about people.
The recession is here, but the interest rates will have to rise. They have been too low for too long.
“bend over buckaroo”
when the economy recovers, someday or others... maybe
right now, NOT!
they’re destorying the economy (housing, automotive, business investment, and thus a lot of jobs...) with the sudden high rates
“The U.S. economy is healthy and shows little sign of an imminent recession”
***********
Shades of “transient” inflation.
Nobody believes their clap trap anymore.
+1
A most excellent comment.
I was in a Target store the other day. Never saw the shelves so full of items. Looks like they’re having trouble selling stuff to people whose income is being increasingly spent on the necessities instead of discretionary items.
The timing of this statement suggests Wednesday’s CPI might not be going in the direction they want it to.
This year, President Biden has proposed a civilian federal pay increase of 4.6%, the highest in 20 years.
It won't be enough, but by golly, those DC bureaucrats will survive somehow. The courage!
(LOL)
Yes.....
📉📉📉
Sorry, Bucko, but your hand on monetary policy thus far has been a train wreck.
James Bullard said...
He must have received his Economics degree from BU.
Just like AOC.
5.56mm
Either our Federal Reserve have no idea what they are doing or they are okay with moderate inflation and they have planned accordingly.
I see.
Yes.
We see lots of people in the shopping malls..
but mostly tthey don’t seem to have any big packages or shopping carts full of purchased mechandise
sales may well be going down
We do see that the local Ford dealer is not selling much..
(this due to his having tacked on “premiums for the dealer” adding to the MSRP prices........a little golf cart kind of basic transport car had a $10,000 extra sticker on it, and a hot sporty model actually had a $50,400 EXTRA fee on it! We were just one customer visitation but we walked right out without buying anything.)
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