Published March 15, 2024
The Federal Reserve likely won’t cut rates in their meeting next week, but officials could indicate how recent inflation data has altered their thinking.
The Federal Reserve Open Markets Committee (FOMC) will meet on Tuesday and Wednesday. Economists said there’s a chance policymakers will pare back their expectations for three cuts to the Fed’s benchmark interest rate this year.
In addition to their typical rate decision and statement, the FOMC will release their quarterly “dot plot” forecasts. The graphs will show how FOMC members view the economic outlook and how high officials think the fed funds rate will be for the next few years.
Back in December, Fed officials had projected that they would lower the rate by 0.75 percentage points from its current range of 5.25% to 5.50% in 2024. However, consumer price increases in January and February have thrown some doubt on those projections, as some think the data could indicate inflation’s downward trajectory has stalled.
“This may be fanciful thinking on our part, but there are several inflation reports and plenty of time between now and June to change course if needed,” Michael Gapen, U.S. economist at Bank of America, wrote in a commentary. “The clear risk is less confidence on inflation reduces the number of cuts in 2024, if not 2025.”
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SOURCE: www.investopedia.com
RELATED: White House: We’re Still Making Inflation Progress, Last Two Months Had ‘Seasonality’
Published March 15, 2024
During an interview with Bloomberg on Thursday, White House National Economic Council Deputy Director Daniel Hornung stated that “our progress on inflation does continue,” but “we’ve expected some seasonality in January and February.
We didn’t expect the progress to continue on a straight line.”
Hornung said, [relevant remarks begin around 3:30] “I won’t comment on monetary policy and the Federal Reserve. I think what I can say, if you take a step back, our progress on inflation does continue, down from a peak of 9% to the 3% range.
Always, I think, we’ve expected some seasonality in January and February. We didn’t expect the progress to continue on a straight line. But I think if you look at what we have from CPI and PPI and now looking ahead to core PCE for the month of February, expect some continued progress there on that core annual inflation number.
And from the president’s perspective, I think, as you saw in the State of the Union, a continued focus on his part of continuing to really make clear to the American people that he has a series of plans that would lower costs for American consumers and really drawing a contrast with Republicans in Congress who have not taken up his plans, and, in some cases, have focused more on other issues like tax cuts for large corporations and the wealthy.”
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SOURCE: www.breitbart.com
RELATED: Bidenflation Rages On As Bidenomics Continues To Fail America
Published March 12, 2024
The Consumer Price Index (CPI), a key inflation index, came in “hotter than expected” in February, increasing at an annual rate of 3.2% and overall prices are up 18.6% since Biden took office. This is just the latest example of Bidenomics continuing to fail Americans, as they are forced to pay more for everyday necessities while earning less because of Bidenflation.
MAKE NO MISTAKE: Bidenflation is a direct result of Joe Biden’s out-of-control government spending. House Republicans have fought to rein in Biden’s reckless spending and restore fiscal responsibility to Washington.
BIDENOMICS BY THE NUMBERS:
- Inflation is a tax on ALL Americans.
- When Joe Biden took office, inflation was at just 1.4%.
- Since Joe Biden took office inflation has risen by 18.6%.
- Eggs are UP 49% since Biden took office.
- Gasoline is UP 38.8% since Biden took office.
- Transportation services are UP 35.2%.
- Baby food and formula is UP 29.6%.
- Electricity is UP 28.6% since Biden took office.
- Food prices are UP 20.9% since Biden took office.
- Rent of primary residence is UP 19.5% since Biden took office.
- Real average hourly earnings for all employees decreased 0.4% from January to February.
- Real average weekly wages are down 4.2% since Biden took office.
