The Fed’s New Dot Plot After Its September Policy Meeting: Chart
Vince Golle Bloomberg September 20, 2023 The Federal Reserve’s so-called dot plot, which the US central bank uses to signal its outlook for the path of interest rates, shows the median year-end projection for the federal funds rate is 5.6%. The estimate for the end of 2024 increased to 5.1%. Fed policymakers on Wednesday held […]
Rising Rates Make Big Companies Even Richer
James Mackintosh The Wall Street Journal September 15, 2023 The amount companies earn from cash in the bank is going up even as interest costs fixed during the pandemic stand still. The Federal Reserve jacked up interest rates to slow the red-hot economy. At some of the biggest and most secure companies, the moves had the opposite […]
Powell Signals Fed Will Raise Rates If Needed, Keep Them High
Catarina Saraiva and Craig Torres Bloomberg August 25, 2023 Fed in position to ‘proceed carefully’ at upcoming meetings Stronger economy could push up inflation, warrant more hikes Federal Reserve Chair Jerome Powell said the US central bank is prepared to raise interest rates further if needed and intends to keep borrowing costs high until inflation is on […]
US INSIGHT: ‘Objective’ Fed Watcher Thinks FOMC Turned Dovish
Anna Wong (Economist) and Nicholas Hallmark (Economist) Bloomberg July 25, 2023 Former Fed Chairman Alan Greenspan famously said, “If I turn out to be particularly clear, you’ve probably misunderstood what I’ve said.” While Fed communications have become more transparent since Greenspan’s tenure, Fed watchers still often disagree on what they hear — perhaps reflecting their […]
Fed Seen Hiking Final Time to a 22-Year Peak in Economist Survey
Steve Matthews and Sarina Yoo Bloomberg July 20, 2023 One-fifth see another hike by November to contain inflation Fewer economists see recession relative to June survey Most economists expect the Federal Reserve to lift interest rates one more time next week as it ends a 16-month hiking cycle that has been the most aggressive fight against […]
Annual inflation falls to lowest rate since April 2021, as Americans pull back spending
Sylvan Lane The Hill June 30, 2023 Annual inflation fell in May to the slowest pace since April 2021, as Americans pulled back their spending, according to data released Friday by the Commerce Department. The personal consumption expenditures (PCE) price index, which is the Federal Reserve’s preferred way to track inflation, rose 3.8 percent annually […]
US REACT: Goods Disinflation Showing Signs of Returning
Eliza Winger Bloomberg June 1, 2023 OUR TAKE: The ISM manufacturing gauge declined further in May, its seventh straight month in contractionary territory. With consumers shifting their purchases toward services rather than goods, it’s hard to foresee a return to positive territory anytime soon. With the May print showing demand easing and prices paid dropping […]
US Money Supply Falls for Fifth Month in Hopeful Inflation Sign
Alex Tanzi Bloomberg May 23, 2023 The pace of US money supply declined in April for a fifth month, an unprecedented stretch that offers hope that inflationary pressures will continue to cool. The M2 measure, which includes cash in circulation as well as bank and money market accounts, dropped 4.6% to $20.7 trillion from the same […]
Jeremy Siegel Sees the Fed Lowering Rates by Year-End
Brandon Sapienza Bloomberg May 5, 2023 The Federal Reserve will lower interest rates by the end of this year, University of Pennsylvania’s Wharton School of Business professor Jeremy Siegel said in an interview with CNBC. Siegel said he believes that pressure is on the Fed to cut rates, especially if wages dip and the labor market cools too […]
US Core PCE Inflation Stays Brisk While Consumer Spending Stalls
Reade Pickert Bloomberg April 28, 2023 Underlying US inflation remained brisk last month, reinforcing the case for another Federal Reserve interest-rate hike next week. The personal consumption expenditures price index excluding food and energy, one of the Fed’s preferred inflation gauges rose 0.3% in March for a second month. Compared with a year ago, the measure was up […]