XPost: talk.politics.guns, alt.politics.economics, or.politics
In article <t19tvq$2t5ob$
34@news.freedyn.de>
<
governor.swill@gmail.com> wrote:
Obama and Biden are both idiots. They flunked math.
The Federal Reserve could raise its benchmark interest rate as
high as 5.5% by the end of next year in its effort to bring
inflation down, said Jason Furman, a Harvard economics professor
who chaired the Council of Economic Advisers under President
Barack Obama.
It is entirely “plausible” that the Fed raises its benchmark
rate to 4% this year and then undertakes a string of quarter-
percentage-point rate hikes in 2023 to get up to 5.5%, Furman
said, in an interview with MarketWatch on the sidelines of the
Fed’s summer retreat in Jackson Hole, Wyo.
‘The list of presidents who have supported the Fed when they
were hiking rates is not long.’— Jason Furman, adding that
President Joe Biden has done so
The Fed’s benchmark rate is now in a range of 2.25% to 2.5%. The
central bank’s own projections have it stopping its run of rate
hikes just shy of the 4% level.
Furman said the Fed needs to push its benchmark rate above 5% to
get inflation down to less than a 4% annual rate, he said.
Consumer price inflation was running at an 8.5% annual rate in
July.
Inflation has morphed from a straightforward matter of too much
demand and too little supply to become more about rising wages
and prices, he said.
Furman said he likes to refer to the situation as featuring wage
and price “persistence” rather than a “spiral” because inflation
is not spinning out of control but is holding its own and has
staying power. It is likely that inflation “comes down very
slowly,” he added.
Furman observed that the U.S. inflation outlook is not “dire or insurmountable.”
Unlike in the 1970s and early 1980s, wages are not indexed to
inflation, and the public has not come to expect high inflation.
The Fed also benefits from support from President Joe Biden,
Furman said. “The list of presidents who have supported the Fed
when they were hiking rates is not long,” Furman said.
The likelihood of a recession in the next nine months is
relatively small, Furman said.
Considering we're already in one, that's a laughable statement.
https://www.marketwatch.com/story/jackson-hole-notebook-furman- says-feds-benchmark-rate-could-hit-5-5-next-year-11661615968
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