Tag
The short answer? You can never have enough data.
While economists agree rate cuts won’t instantly juice an economy, there’s really no consensus on just how long that lag is.
We know the labor market is slowing, but by how much? And what does that mean for wage growth?
Powell is paying close attention to “final sales,” a narrower measure than GDP itself that focuses on private sector demand.
From 2020-2022, interest rates were near zero.
It’s taking a longer time for the broader economy to feel the impact of higher interest rates, in part because of debts locked in when rates were lower.
Despite the CPI coming in unexpectedly low, the Federal Reserve needs more convincing that inflation is really getting better.
The Fed’s rate hikes were meant to slow the economy and dampen inflation by raising borrowing costs. There’s evidence that’s happening.
Decades ago, the Fed was battling double-digit inflation, and Chair Paul Volcker took aggressive action that drove interest rates way up.
The latest jobs report is unlikely to change the Fed’s mind when they meet Tuesday and Wednesday.