Why the Fed isn't confident about cutting rates
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- Опубликовано: 14 окт 2024
- The Federal Reserve held interest rates in June, announcing the decision after its FOMC meeting last week. While rates remain higher for longer, are there any signals as to when the Fed will start cutting rates?
There's still hope among experts that the Fed is still considering two rate cuts. Minneapolis Fed CEO and President Neel Kashkari believes it is "reasonable" that the Fed could wait until December - after the 2024 election - to begin cutting.
Former Chicago Fed President and CEO Charles Evans joins Market Domination to talk about the Fed's monetary policy outlook and what it will take for officials to start cutting rates while keeping on the path to their inflation target.
"The FOMC has been talking uniformly about how they need more confidence... They are not very detailed, they are not detailed at all in what it takes in order for them to become more confident," Evans explains, adding:
"And so, it's this, currently, somewhat opaque process as to how many good inflation reports are they going to need to see before they say, 'okay, I think we're finally going to get down to 2.' They have the benefit of a strong economy right now - the unemployment rate is 4%, historically that's quite low, and the funds rate's at 5.3%. And they must be asking themselves, 'why should I cut rates early until I absolutely know that I'm going to get down to 2?'
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Why was the FED buying 80-100B of Treasuries every month throughout 2021?? They are always overreactioary and late.
Interest rates right now, are actually a bit below average for the last 30 years. They kept them way too low, for way too long and that is the real reason we are seeing inflation. It has nothing to do with the president unless you consider which one pushes low rates for his personal profit.
Ironically, if they try too hard to avoid seeming political - they could end up delaying action BECAUSE of politics.
if they cut they are obviously political since inflation is still very high and everyone knows inflation is not 3.6% like they claim. House prices went up 7% this year alone in metro areas.
*From your point of view, is it worth taking advantage of this drop in American inflation to invest in S&P500 shares and ETFs? Which companies do you think are good to invest in with the dollar as it is now?*
Our peak era has passed, with 401(k)s struggling during the recession. My $750K retirement portfolio is shrinking due to inflation, and I fear our leaders are repeating the mistakes of the past. If rising costs worry you about your retirement, I empathize. The American elections are bringing uncertainty with chaotic foreign policies, regulations, and energy strategies.
For retirees and those nearing retirement, it's especially tough. Years of hard work lost to a problem beyond your control-I sympathize with all facing retirement now.
I'm anxious about our future, particularly financially. Considering my first stock market investment, but how with the market in turmoil?
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I urgently require advice on how to save my port-folio from big losses and develop better tactics. What is the best way for me to contact this advisor?
Don’t think they raised them enough for political reasons.
Keep rates where they are at.
Surprised Canada dropped 25 pts recently. Bad move
Unemployment isn’t high enough, that’ why.
Powell actually said the quiet part out loud. They won't be satisfied until workers lose any potential for wage increases. The benefits of the strong economy are meant for the financial industry and the investor classes.
100%,@@usetheforce9836 , “softening resilient labor markets” is what they call it when they can’t get enough people fired / laid-off / furloughed … all the euphemisms
If the fed wants to avoid a madman abandoning taxes and replacing them by tariffs, the fed should cut rates from september onwards
They understand the potential for harm to the average American, and that's a risk they're willing to take.
The GLOBAL GAMBLING CASINO
aka the Stock Market
All that ails the planetary civilization started with predatory capitalism and the betting parlors in the City of London
Biden wants it for September😂
I was against Trump until these beaucrats decided to keep the status quo. Trump said he would fire the head of the Fed and now I’m with him. This is an outrage. Normal Americans need help desperately
Well MAGA, you tried, I'll give you that. Your boy is a convict and on his way to Cellblock D.