Inflation is not going anywhere for a while. It will be a permanent fixture of the economy for quite some time due to its sticky nature. This was pretty much conceded by Federal Reserve Chair Jerome Powell and the Federal Open Market Committee (FOMC). Unfortunately, despite President Joe Biden claiming that inflation has gone up […]
Inflation
Federal Reserve raises interest rates to highest levels since 2008
The Federal Reserve raised the benchmark federal funds rate by 75 basis points following the September Federal Open Market Committee (FOMC) policy meeting. This lifted the target rate to a range of 3% to 3.25%, the highest level since 2008. According to the FOMC’s dot-plot, here is what the path to future interest rates look […]
Joe Biden: Inflation has gone up ‘hardly at all’
President Joe Biden appeared on CBS’ “60 Minutes” where he was asked about the United States economy, particularly inflation. While his answers were generally incomprehensible, he essentially stated that inflation has flatlined and that the economy created all these jobs. Huh? In August, the consumer price index (CPI) came in at a higher-than-expected pace of […]
Reminder: Market is anticipating a 75-bps rate hike at September FOMC meeting
After the disappointing August consumer price index (CPI) reports, the financial markets tanked as everyone started freaking out about a potential full-point increase in interest rates at this month’s Federal Open Market Committee (FOMC) policy meeting. While it is likely the central bank will continue to hike rates and maintain its tightening campaign, the market […]
5 things we learned from the August inflation report
The U.S. annual inflation report for August came in, and it was not pretty. In fact, it was so bad that the financial markets crashed. It was an ugly sight. But the year-over-year consumer price index (CPI) eased to 8.3%, energy prices plummeted, and President Joe Biden assured the country that progress is being made. […]