Federal Reserve Chair Jerome Powell talked about regulators’ interest rate outlook in a speech at Spelman College on Friday, calling rate cuts a “premature” notion currently.
Chicago Booth Professor and Former Fed Governor Randall Kroszner highlights certain misconceptions on rate cuts being taken from Powell’s comments as the Fed continues fighting toward its inflation target.
“It’s going to take a while to get anywhere close to 2%, and I don’t think they’re cutting any time in advance of getting very close to that 2% goal,” Kroszner explains.
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Fantasyland thinking that JP will lower anytime soon!
Savers and responsible people will finally be rewarded for living within their means.
Back to basics People!
Lower your expectations and enjoy the simple things in life
True….By my estimation core inflation will hit 2.1 percent early in 2025 and rate cuts could begin around spring into summer 2025…
Powell will never admit to lowering till he actually lowers
Try predicting the inflation curve rather than int rates.
The way I see this play out is the FED goes into hold mode. A recession starts to hit and the market expect the FED to lower rates but they continue to hold out of fear of lowering too soon and inflation returning. The markets will panic and the recession will worsen and by the time the FED lowers rates it will be too late.
This sounds the most plausible to me. Rather be to late than to early and can’t be 100% accurate on predicting so makes since.
What is worse than a recession?…Raising rates too early, then inflation comes back with a vengeance, then having to battle high inflation for a decade…
@@paulbunyan9436 hyper inflation would put us in a great depression. Why risk that? So you are right
@@paulbunyan9436that’s precisely why I suspect they will not lower rates at the first sign of a recession as the market expects and I think once the market realizes that it will drop.
I think your assumption makes a lot of sense. I don’t know why most investors are overly optimistic about the rates cut. The current rates remind me the 2001/2006 rates when they peaked, a wild recession followed.
hi
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Read his speech backwards !! If he predicted a good time ahead you know what that means !!
Why Amazon, blackrock and Hetaway fund are selling millions of their shares if the market in Wall Street is good ?? Mmmm
Powell do not give in to the pressure of bankers and corporations that steal from the system with lower interest, keep the interest hight for longer time to make sure the inflation gets down to 2 % , if you lower the interest you will lose the trust of people and the inflation will start increasing again.
Jerome Powell NEEDS to be dethroned. His constant manipulation of OUR money has gone too far for too long. STRIP HIM OF HIS POWER.