The Federal Reserve has significantly increased its expectations for inflation this year following massive government spending from Democrat President Joe Biden.
On Wednesday, The Federal Reserve “considerably raised its expectations for inflation this year and brought forward the time frame on when it will next raise interest rates,” CNBC reported. “However, the central bank gave no indication as to when it will begin cutting back on its aggressive bond-buying program, though Fed Chairman Jerome Powell acknowledged that officials discussed the issue at the meeting.”
Officials said that increases in interest rates could come as soon as after the 2022 midterms in 2023. However, they previously said that interest rates would not increase until at least 2024.
“This is not what the market expected,” James McCann, deputy chief economist at Aberdeen Standard Investments, told CNBC. “The Fed is now signaling that rates will need to rise sooner and faster, with their forecast suggesting two hikes in 2023. This change in stance jars a little with the Fed’s recent claims that the recent spike in inflation is temporary.”
It won’t take much of a rise this time to trigger a banking system meltdown. My guess is a percent or two; no more than that.
My expectation is that the Fed will simply change its current definition of inflation, a definition, which has itself changed many times before.
“Temporary inflation”
Is that banker humour?? Zimbabwe had temporary inflation. The common banknote went from $1 to $100 trillion. Then they deflated their currency 100 trillion times and were back at square one. In the meantime the government stole every penny from the idiots who held their paper.
I am not sure of your age scar but inflation has never been temporary. Only a brain dead government employee could say such a thing. And the the fed is controlled by the government no matter how they would like to say otherwise.
This is your captain speaking. We are currently at 30,000ft on a heading due south enroute to Venezuela. The sudden drop in cabin noise is no cause for alarm as we temporarily ran out of jet fuel. Not to worry as the solar panels are keeping the lights on and wind is powering the hydraulics. We are in complete control.
We are your “new” … “young” … pilots. We have replaced all you ollllllllld people. You’re all gonna die soon anyway. We don’t need your “math” … and we have redefined your tired old science. Yes, our solar, wind-assisted, power will keep our planes afloat. We will do solar … better … than Jimmy Carter did in 1980. Our socialism will be better too!
Looks like the Russians and Chinese are starting to liquidate their US bonds after Mr Biden’s performance on the world stage. Seems the Federal Reserve doesn’t want to be left holding the bag. Get some Au and/or Ag…better yet a lot of Pb.
It is said that you can’t turn Pb into Au, yet any number of men have done so. It is suggestive that in order to maintain Au supply a goodly amount of Pb might come in handy.
So funny. When a Republican is in charge, low unemployment is “unexpected”, and when a Democrat it is charge high unemployment is “unexpected”, even though the policies which create each are well understood.
Training to the level of stupidity on display is truly remarkable, so bad that it has to be questioned, people who can tie their own shoes and bathe regularly cannot be that stupid.
It has to be malevolence.
as Dennis said, a couple of points is all that is needed, before O’Obutthole economics crashes, and that is what he wants. It’s by design! Inflation and street riots are designed to mold the public will.
https://www.wsj.com/articles/red-hot-u-s-economy-drives-global-inflation-forcing-foreign-banks-to-act-11623933343
Central Banks of Turkey, Brazil, and Russia have raised rates in response to surging inflationary US economy. Norway has signaled its intention to do so.
I think the US and Euro Zone are going to wait too long before acting. The seeds of the next economic crisis have broken the surface. Only the deluded (Mark Carney, etc), the naive (Freeland, etc), and the truly stupid (Trudeau, etc) can deny what’s happening.
They keep telling the world that there’s 3% inflation when any idiot knows it’s 20 or 30 %. Lock in your mortgage for at least 10 years at what ? 2.5 or 3 %. Trust me, it isn’t going any lower soon. Once interest starts moving, it’s moving quickly.
And just what did the bloody market expect, given they had helped Obama and his socialis pals back into power.