Posted on 09/21/2024 2:21:05 PM PDT by nickcarraway
Michelle Bowman, who advocated for 25 basis points of rate cut, believes moving at measured pace will ensure bringing inflation down to 2%
Michelle Bowman, a member of the US Federal Reserve Board of Governors, said Friday she views the central bank's jumbo interest rate cut as a "premature declaration of victory" on inflation.
Bowman, who was the only member of the Federal Open Market Committee voting for a 25 basis points of rate cut instead of 50 basis points, said core inflation remains above 2.5%.
"We have not yet achieved our inflation goal," she said in a statement. "I see the risk that the Committee's larger policy action could be interpreted as a premature declaration of victory on our price stability mandate."
"I believe that moving at a measured pace toward a more neutral policy stance will ensure further progress in bringing inflation down to our 2 percent target. This approach would also avoid unnecessarily stoking demand," she added.
Bowman said American economy remains strong, with solid underlying growth in economic activity and a labor market near full employment.
"Although hiring appears to have softened, layoffs remain low," she said. "I see the normalization in labor market conditions as necessary to help bring wage growth down to a pace consistent with 2 percent inflation given trend productivity growth."
Bowman said her reading of labor market data has become more uncertain due to increased measurement challenges, and the difficulty in assessing the effects of recent immigration flows.
"I am also taking signal from continued solid growth in the spending data, especially consumer spending, reflecting a healthy labor market," she added.
"Higher prices have an outsized impact on lower- and moderate-income households. Accomplishing our mission of returning to low and stable inflation at our 2 percent goal is necessary to foster a strong labor market and an economy that works for everyone in the longer term," she added.
With all that jargon she’s still a moron. This inflation is not an “overheating economy”. It’s a massive dump of government money. Nothing less….
How about ELECTION INTERFERENCE?
Bowman: Use measured steps to mitigate inflation so as not to over-heat the cash/credit economy.
Powell: Elect the Democrat at all costs!
“ Bowman graduated from the University of Kansas in Lawrence with a Bachelor of Science degree in Advertising and Journalism. She then earned a Juris Doctor from Washburn University School of Law in Topeka”
Obviously an expert in economics…
Just a Bushie hack
Plus it's cheaper to pay the interest on the debt. It's getting too expensive now.
The Inflation target should be 0.25%.
Answer - ask 3 economists what they think is going to happen.
So, college level education is not an indicator of economic intelligence or understanding. Since colleges do not offer degree programs in common sense, any academic background is just as likely as another to produce a good economist.
And since she has formal education in modern journalism and lawsuits, she seems well-prepared for what the Fed looks for.
She’s not smart enough to understand that massive government borrowing and spending is the sole cause of inflation. She was jabbering about jobs numbers etc. None of that is part of the equation.
When the government constantly changes how the rate of inflation is calculated how trust worthy is that number and how useful is it really.
"I am also taking signal from continued solid growth in the spending data, especially consumer spending, reflecting a healthy labor market," she added
How healthy is the labor market when a huge portion of the native labor force does not even seek work?
The Fed balance sheet has shrunk by $1.5 TRILLION in the past two years. Quantitative tightening began in June, 2022.
“The Inflation target should be 0.25%.”
The 2% standard was set to provide a safety margin if inflation drops too fast. Recessions and depressions (periods of deflation,) are great for money value but devastating to society.
Money supply is just one side of the equation (and it’s been shrinking for over two years.) The other side is demand, which is directly linked to job expansion or decline.
Even 2% Inflation is devastating to money value.
Especially if “Capital Gains” are are not accurately “adjusted” for the inflation over the period [especially like a house that has been owned for 40 years] an asset is held.
In nearly every election the voters decide based on their current economic situation.
I kept saying the last two years the economy had better crash hard or we are in deep, deep trouble.
Now the investors in the Stock Market are breathlessly exuberant. And gas is 50 cents cheaper than last year. And the media says inflation is a thing of the past.
That makes the Dems look good. Which could end our Republic.
Really depressing to me.
If Harris wins, most likely we’ll see her being like Cristina Fernández de Kirchner from Argentina. So we’ll see some sort of Peronism as the prevaling economic policy and we’ll see inflation explode in the next couple of years.
They had to do it to try to make the Dims look good.
And gas is 50 cents cheaper than last year.
And over 2 dollars higher than when Trump left office.
The “stock market” is basically a handful of high tech firms.
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