Overall consumer spending remains strong, however, so Fed policymakers will continue to tighten the screws. Analysts will be watching closely today for signals of how much higher interest rates are likely to go.
"The Fed will continue to hike rates until it actually restrains the economy and intends to keep rates at those restrictive levels until inflation is unmistakably on its way to 2%," McBride said.The prospect that interest rates will stay higher for longer has rattled investors in recent weeks. The Dow Jones Industrial Average fell more than 313 points on Tuesday, and other major stock indexes were also down about 1%.
In recent weeks, Fed officials have stressed their willingness to do whatever it takes to get inflation under control, even if that results in somewhat higher unemployment.businesses adding hundreds of thousands of jobs"If unemployment were to stay under, say 5%, I think we could really be really aggressive on inflation," Waller said."Once it gets over 5%, there's going to be obvious pressure to start making tradeoffs.
Fed chairman Jerome Powell insists the central bank will not be swayed by political pressure to take its foot off the brake prematurely. Powell argues that's, allowing inflation to become more firmly entrenched. "We will keep at it until the job is done," Powell told an audience at the CATO Institute this month."The longer inflation remains well above target, the greater the risk that the public does begin to see higher inflation as the norm, and that has the capacity to really raise the cost of getting inflation down."
Source: Loan Digest (loandigest.net)
Also ask them how raising taxes on anybody and putting more money in the government's hands instead of in the private sector helps inflation?
This is what happens when you have people in charge who have never been in the private sector and spend their life in politics. They don't know how to run anything. Ask them to explain how you spend yourself into prosperity? Printing money causes devalue of the dollar.
The Fed Reserve should take a hard look at the profiteering going on under their nose. Why must I pay higher prices & higher interest rates for greed and corruption?
Inflation Expansion Act
Everything except actually dealing with high prices. Keep putting the squeeze on American consumers - never the companies raking in exorbitant profits.
Like trying to paint your house with a hammer, because you only have a hammer.
Price gouging is the problem.
Go Biden go Biden way to be best president ever keep taking my money bro can't wait until it feels like 1830 again
They’ll never regulate the greed. I’ve got about $3k in debt left to pay off. I’ve been eating cheap AF food, going without just to pay bulk payments and get the remaining $3k debt paid off. I’m not putting ANYTHING on credit.
The Fed is over-correcting then.
What inflation? There was no inflation in July! Biden said so! And it’s just like and inch or something. Biden said so. Oh that’s right. Biden is a liar.
It's actually just trying to put the brakes on low level salaries
The key to stopping inflation is by regulating the greed of corporations and the banks that support that greed. Corporations and banks need to absorb the reasonable cost of doing business and not pass on to the consumer the cost unless the goal is to end consumer capitalism.
Looks like I’ll never be a homeowner.
Raising interest rates is inflation. It hurts those at the edges the worst. ENOUGH.
Maybe they should tell corporations to stop price gouging
So, steal more money from the peasants
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