U.S. inflation cools again, giving Fed room to downshift on rates
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Re: U.S. inflation cools again, giving Fed room to downshift on rates
#2Re: U.S. inflation cools again, giving Fed room to downshift on rates
#3>Excluding food and energy
Re: U.S. inflation cools again, giving Fed room to downshift on rates
#4>Excluding food and energy
Yeah, but who uses those?
Re: U.S. inflation cools again, giving Fed room to downshift on rates
#5not surprising. now that the covid related spike is far enough in the past I expect inflation to be down drastically since the throttle that was low rates is no longer being pressed on. question is, will the Fed stop raising rates soon enough?
Re: U.S. inflation cools again, giving Fed room to downshift on rates
#6>Excluding food and energy
* Food at home +0.2%, smallest since March 2021
* Fuel oil -16.6%, biggest decline since February 1990
Seems important to point out to anyone reading your comment
Re: U.S. inflation cools again, giving Fed room to downshift on rates
#7The Fed can't lower rates if only because it needs to maintain its credibility. The financial press has been cranking out opinion pieces disguised as serious analysis nonstop in an attempt to wish a change of monetary policy into being. If the Fed backs down anytime soon, it could decrease the effectiveness of future increases. The next time the Fed raises rates, consumers, asset holders and businesses can just tell themselves that this increase will be brief and the Fed will soon lower rates. The Fed is engaged in a game of psychological brinkmanship with asset holders and businesses who think they can ride this out. Only when the latter capitulate - by selling houses for lower prices for example - can the Fed begin to consider lowering rates. The Fed needs to hammer home the message that you can't fight the Fed.
Re: U.S. inflation cools again, giving Fed room to downshift on rates
#8>Excluding food and energy
There are other knock-on effects....avian flu, weird hiccups in the supply chain. I'm curious to see how this will affect day to day stuff as so many thing I run into just get filed under 'the times we live in'.
Re: U.S. inflation cools again, giving Fed room to downshift on rates
#9not surprising. now that the covid related spike is far enough in the past I expect inflation to be down drastically since the throttle that was low rates is no longer being pressed on. question is, will the Fed stop raising rates soon enough?
YoY is comparing Jan 2021 to Jan 2022. What’s the reset?
Re: U.S. inflation cools again, giving Fed room to downshift on rates
#10>The data, when paired with prior months’ lower-than-expected readings, point to more consistent signs that inflation is easing and may pave the way for the Fed to downshift to a quarter-point hike at their next meeting ending Feb. 1.
I hope not. There's an absurd amount of dumb money floating around, and YoY inflation is still at 6.5%. Higher interest rates are going to force companies and investors to actually post profits instead of functioning as giant leeches on the economy.