I suspect they're going to need more increases in interest rates than the market is now judging.
Watch my segment from last night on with on #WallStreetWeek
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J Powell doesn’t have any credibility left so they will have to do more actual hikes to get the rates where they need to be.
Not enough people have lost their jobs and workers' wages haven't tanked enough yet, quick guys we need more rate hikes!!!
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Is Mr. Summers right:
Higher interest rates would-
- Crash the economy59.1%
- Help the economy40.9%
88 votesFinal results
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In a conversation between Profs JB Shoven, R Gordon, and JB Taylor on “The future of potential output growth in the US economy” at ASSA 2019 meeting, inflation and unemployment “target band”rates came up. For inflation a soft lower bound 2% and hard upper bound 4%, eg. Why not?
Yet, so much Demand left in the US system.
Really interesting how people are still willing to spend.
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Yeah, no kidding but that is assuming Powell genuinely WANTS to fight inflation. Market thinks he's gonna Chicken 🐔 out and not do what's required.
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Why wouldn’t they just keep at 5-5.25% for 6 months then reevaluate? Seems more likely than increasing the neutral rate
easy to predict a recession with the Fed wants to go into recession. WTF
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This is a 10+ year effort, Rome doesn’t need to be built in a day. They shouldn’t cut a la 70s circus and they shouldn’t choke out the economy with DD rates, they should get rates to modest growth territory then let the economy drive, no more over-steering..
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Why is the dollar (DXY) still tanking?
Jobs numbers are hot.
The PMI is plummeting.
Who is their right mind is adding risk right now?