The Federal Reserve’s interest rate pause for December is pushing investors to turn their attention to 2024. In particular, speculation is now focused on whether a soft landing scenario can be sustained in the new year.
EY Chief Economist Greg Daco joins Yahoo Finance anchors Brad Smith and Seana Smith to discuss major factors that could influence future Fed decisions on interest rates, like consumer spending and labor market data, and how regulators are looking to navigate next year’s economic environment.
“The Fed’s candid pivot towards the fact that it will be adjusting monetary policy was very important. Now that’s behind us, this acknowledgment that inflation has been falling faster than initially anticipated is a very good development,” Daco explains. “Now the Fed will have to calibrate how rapidly and how much it cuts rates, but that first step is behind us which is a good thing.”
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This is why I’m so confused by all the optimism. They won’t cut until there’s a good reason.
i know right? everyone celebrating like they gonna get a low mortgage tomorrow or something.
@@tbor1277 Fishy, I would say, if it wasn’t the Fed
I’m confused, too. Maybe someone on the Board didn’t like someone, and said I’m going to go out and say they’ll be 4 cuts next year. Seems unnatural. Stay smart.
There are many good reasons. US govt cannot afford paying 5% interest on their Treasury bonds / debt. And they will be issuing more billions worth of bonds in 2024 to finance the deficit. Rate will need to be cut to lower the interest payment the govt needs to pay. Also 2024 is an election year. Interest will need to be lowered to make the current administration looks good. The Feds won’t cut but they will be pressured to cut. If Trump can pressured Powell before, there is no reason the current administration can’t do it as well.
@@kurniawanms2 It seems unnatural; perhaps you’re right!
What this younger generation is dumbed down, and brainwashed into believing while abiding in the land of LaNoisuled, is that they should not ever mention, if they’re even aware, anything about the permanent solution for eliminating inflation which, by the way, is caused by the greed/avarice of the now global conglomerate “Big Corporate Business” entities which includes Big Oil with that solution to the inflation problem being a return to the OPA system. We’re talking about the Office of Price Administration system of price controls that was an effective means for tamping down the greed/avarice of corporate America during and immediately after WW2.
Instead of defeating inflation, this current generation of what appears to be Mafia State flunkies (J. Powell, J Yellen, many others) want to play around with raising interest rates that make the rich a lot richer and the poor even poorer.
WELCOME TO THE MAFIA STATES OF AMERICA!
Will they, won’t they? Yesterday was yes, today it’s maybe!!
This IS frustrating but I have to give the Fed some credit in navigating a dual mandate during a period here we experienced a world-wide pandemic and the outbreak of a major land war in Europe which impacted key commodity prices. There was some discussion a while back that we would have to see a recession to deflate the housing market. That appears to be the stickiest piece of inflation data.
am i allowed to comment here? over on yahoo finance the site where there is practically all right winger comments, i’m totally blocked. maga nuts own that site.