There are three factors that could lead to inflation which include demand-pull inflation, cost-push inflation and built-in inflation.Last month, when Federal Reserve Chair Jerome Powell spoke at an economic conference in Jackson Hole, Wyoming, he issued a blunt warning: The Fed’s drive to curbWhen the Fed ends its latest meeting Wednesday and Powell holds a news conference, Americans will likely get a better idea of how much pain could be in store.
Powell and other Fed officials still say the Fed's goal is to achieve a "soft landing," by which they would slow the economy enough to tame inflation but not so much as to trigger a recession. "They’re going try to avoid recession," said William Dudley, formerly the president of the Federal Reserve Bank of New York. "The problem is that the room to do that is virtually non-existent at this point."
At his news conference Wednesday, Powell isn't likely to drop any hints that the central bank will ease up on its credit tightening campaign. Most economists expect the Fed to stop raising rates in early 2023. But for now, they expect Powell to reinforce his hard-line anti-inflation stance. Indeed, investors responded then by bidding up stock prices and buying bonds, which lowered rates on securities like the benchmark the 10-year Treasury. Higher stock prices and lower bond yields generally boost the economy — the opposite of what the Fed wants.
"I do not anticipate the Fed cutting" rates next year, Mester added, dispelling the expectations of many investors on Wall Street who had hoped for such a reversal. Comments like Mester's contributed to a sharp fall in stock prices last month that began after Powell's stern anti-inflation speech at the conference in Jackson Hole.
Source: Loan Digest (loandigest.net)
Time to vote Dems out in Nov!! Are we done with paying this?!?
Thanks Biden