The FED should have raised rates to 6% months ago to exact pain, raise unemployment, and restrict credit, thus sending a signal to Congress to reign in fiscal spending. Didn't happen and now they are caught with their foot in their collective mouths.
Neel Kashkari, head of the Minneapolis Federal Reserve Bank, stated the following: "Sept 25 (Reuters) - Minneapolis Federal Reserve Bank President Neel Kashkari said on Monday that given the surprising resilience of the U.S. economy, the Fed probably needs to raise borrowing rates further and keep them high for some time to bring inflation back down to 2%." Further, "U.S. central bankers also indicated they are likely to keep rates high longer than earlier thought, with less than half expecting to cut rates to below 5% next year, and one indicating the policy rate ought to end 2024 above 6%." Didn't happen, so now here we are.
Although I love Bianco's work, New Zealand is an anecdote, not an example for large economies to follow. Mark Zandi, the chief economist at Moody's who is also influential in the current administration, says that the Fed should not dally in lowering interest rates. Better to be proactive than reactive given current trends. Negative growth in other economies such as Japan and Germany which will eventually impact our companies. China is slowing--the PBoC should be hiking now. Giving their savers more income would encourage consumption. More explanation in my note but you will not see a Fed rate hike this election year.
The FED should have raised rates to 6% months ago to exact pain, raise unemployment, and restrict credit, thus sending a signal to Congress to reign in fiscal spending. Didn't happen and now they are caught with their foot in their collective mouths.
Neel Kashkari, head of the Minneapolis Federal Reserve Bank, stated the following: "Sept 25 (Reuters) - Minneapolis Federal Reserve Bank President Neel Kashkari said on Monday that given the surprising resilience of the U.S. economy, the Fed probably needs to raise borrowing rates further and keep them high for some time to bring inflation back down to 2%." Further, "U.S. central bankers also indicated they are likely to keep rates high longer than earlier thought, with less than half expecting to cut rates to below 5% next year, and one indicating the policy rate ought to end 2024 above 6%." Didn't happen, so now here we are.
He is spot on but a light weight in the Fed.
The Fed never said they will cut rates or how many times in 2024. This is what the market expected and was and still is wrong. No cuts in 2024
It’s possible that the US is under different (better?) circumstances than NZ because we are home of the global reserve currency?
Not only the Fed needs to cut rates but they shouldn't have hiked them all the way up to these levels in the first place.
Regarding inflation, read my latest article:
https://open.substack.com/pub/arkominaresearch/p/has-inflation-become-a-problem-for?r=1r1n6n&utm_campaign=post&utm_medium=web
The Federal Reserve does not plan on ever cutting Interest Rates. Here's why:
The Truth about Interest Rates & The Future of America
BY: what's the DILL?
https://open.substack.com/pub/blackboxpolitics/p/the-truth-about-interest-rates-and?utm_source=share&utm_medium=android&r=99p96
Naw... check out this Luke Gromen podcast on 'fiscal dominance'... https://www.youtube.com/watch?v=I-u7IN_AuVE.
Although I love Bianco's work, New Zealand is an anecdote, not an example for large economies to follow. Mark Zandi, the chief economist at Moody's who is also influential in the current administration, says that the Fed should not dally in lowering interest rates. Better to be proactive than reactive given current trends. Negative growth in other economies such as Japan and Germany which will eventually impact our companies. China is slowing--the PBoC should be hiking now. Giving their savers more income would encourage consumption. More explanation in my note but you will not see a Fed rate hike this election year.
https://plus.econvue.com/p/the-case-for-china-to-raise-interest?r=co&utm_campaign=post&utm_medium=web