The Fed is dragging the US into a recession to cool surging prices. Most Americans expect inflation to die down on its own.
Ben Winck Business Insider September 27, 2022 The Fed is pushing the US into a recession to cool inflation. It might not be necessary. Inflation expectations have been falling since the spring, signaling there’s little chance of a 1980s-like price surge. Raising rates out of fear that expectations will rebound is “irresponsible,” a former Fed […]
US Producer Prices Fall for a Second Month as Fuel Costs Retreat
Wednesday, September 14, 2022 05:38 AM Source: Bloomberg by Reade Pickert A measure of US producer prices fell for a second month in August as fuel costs continued to retreat, though an underlying measure of wholesale costs firmed in a sign of persistent inflation in the production pipeline. The producer price index for final demand decreased 0.1% […]
U.S. retail sales unexpectedly rise in August; weekly jobless claims fall
September 15, 202210:10 AM PDT Source: Reuters by Lucia Mutikani U.S. retail sales unexpectedly rebounded in August as Americans ramped up purchases of motor vehicles and dined out more amid lower gasoline prices, but demand is cooling as the Federal Reserve aggressively raises interest rates to fight inflation. Consumer spending, however, is likely to remain […]
Falling gas prices are raising hopes that inflation is slowing, New York Fed survey shows
PUBLISHED MON, SEP 12 202211:00 AM EDT Source: CNBC by Jeff Cox Lower gas prices are raising optimism that inflation is on the decline, according to a survey Monday from the New York Federal Reserve. Respondents to the central bank’s August Survey of Consumer Expectations indicated they expect the annual inflation rate to be 5.7% […]
Inflation ‘collapse’ will launch powerful market rally, Credit Suisse predicts
PUBLISHED MON, SEP 12 20227:46 PM EDT Source: CNBC by Stephanie Landsman Credit Suisse expects the Federal Reserve to pause interest rate hikes sooner than widely expected due to tumbling inflation. According to the firm’s chief U.S. equity strategist, it will launch a powerful market breakout. “This is actually what’s being priced into the market […]
Treasuries Suggest Fed Can Tame Inflation Without Killing Growth
Saturday, September 10, 2022 04:00 PM Source: Bloomberg by Michael Mackenzie The bond market is signaling that in the matter of the Federal Reserve versus inflation, its money is on the US central bank. Demand for inflation protection — as measured by yields on inflation-protected Treasury debt — keeps falling. The five-year expected inflation rate […]
Peak Inflation? US Corporations Seems to Think So: Taking Stock
Monday, September 12, 2022 08:36 AM Source: Bloomberg: by Jessica Menton After US stocks snapped three straight weeks of losses, investors are looking ahead to a batch of crucial inflation figures that will help determine the pace of the Federal Reserve’s interest-rate increases this year and beyond. But when it comes to corporate decision makers, […]
Wharton professor Jeremy Siegel says most inflation data is coming in below expectations and hawkish Fed is out of step with economic reality
Source: Insider, September 2, 2022 Inflation is improving and the Fed’s hawkish view is at odds with the economy, Jeremy Siegel said. He noted that 26 of 27 inflation indicators have been below expectations in the last month. It could mean the Fed won’t have to raise rates as much as many observers are expecting. […]
US Consumers Show Signs of Resilience Despite Raging Inflation
Wednesday, August 17, 2022 09:56 AM Source: By Reade Pickert and Brendan Case US consumers are standing firm in the face of hot inflation and rising interest rates — even if they’re spending with a little less gusto and a lot more frustration. Retail sales excluding a price-induced drop in gas station receipts and a drop […]
Why Inflation Is on the Way Down
The Fed should ask Milton Friedman. When growth of the money supply slows, so does the increase in prices. By Donald L. Luskin WSJ Opinion July 25, 2022 2:04 pm ET The Federal Open Market Committee faces a momentous decision this week, with markets fully expecting a history-making second-in-a-row 0.75-point hike to the federal-funds rate. […]