News about rates, Fed

"Let’s hope the Fed’s inflation confidence isn’t as transitory as it was in 2021." From the @WSJ editorial. "Jerome Powell Isn’t Too Worried About #Inflation: The Fed Chairman offers a sunny view about prices and the #economy." #markets #federalreserve #centralbanks #econtwitter

At @MilkenInstitute, @neelkashkari lays out scenarios for #Fed w/ @jeannasmialek: 1️⃣ Stay-put, if inflation moves sideways 2️⃣ Disinflation resumes*, then ease policy 3️⃣ Entrenched inflation (not most likely) then could consider raising rates ⚠️ *Need > 1 ‘good’ inflation print pic.twitter.com/DU4wwtwxiU

The longer the #Fed keeps interest rates at current levels the larger federal budget deficits grow. Rising deficit spending adds to the upward pressure on consumer prices. This pressure will increase when rising deficits lead to a weaker dollar. Higher rates = higher #inflation.

Today the Bank of England held interest rate unchanged at 5.25% for 6th time, as it seeks more proof that #inflation is under control. But an official inflation rate still near 5% shows that inflation remains out of control and that further rate hikes are necessary to rein it in.