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Fed indicates it will let inflation run above 2 percent goal for 'temporary period'
cnbc ^

Posted on 05/23/2018 3:48:05 PM PDT by BenLurkin

The Fed's preferred inflation gauge, the core personal consumption expenditures index, currently is at 1.9 percent, while the headline rate including energy and food prices is at 2 percent. Fed officials described wage pressures as "moderate" though it noted there has been more pressure in industries where labor supply is tightening.

Fed officials see 2 percent inflation as a level that sustains economic growth without putting too much upward pressure on prices.

After seven years of keeping its benchmark interest rate near zero, the FOMC began raising rates in December 2015, with the current target range at 1.5 percent to 1.75 percent.

As the economy has seen growth above its recovery trend and inflation inches its way toward the Fed's goal, market participants have been speculating on how quickly the Fed will continue to hike and when it will stop. A few members stated that the Fed is getting close to its "neutral" goal of setting a rate that is neither constrictive nor overly expansionary to growth.

Though Fed officials indicated in March that a total of three rate hikes this year were likely, traders in the fed funds futures market in recent days briefly put chances of a fourth hike above 50 percent. That probability has since declined to about 43 percent.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy
KEYWORDS: economy; inflation
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1 posted on 05/23/2018 3:48:05 PM PDT by BenLurkin
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To: BenLurkin

If you read the Mandate for the FED it says that the FED is to maintain Zero percent. But the FED never had any respect for the law and it works for bankers. Not the American people.


2 posted on 05/23/2018 3:51:52 PM PDT by Revel
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To: BenLurkin

At least with interest rates up, I think I’m making money (even though I’m not!).


3 posted on 05/23/2018 3:53:34 PM PDT by MUDDOG
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To: BenLurkin

Normally they find a reason to clamp it off for Republican Presidents.


4 posted on 05/23/2018 3:55:36 PM PDT by Steely Tom ([Seth Rich] == [the Democrat's John Dean])
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To: BenLurkin
I have noticed shrinkflation has again hit some of the products in the grocery stores -- reducing content amounts while keeping prices relatively the same.


5 posted on 05/23/2018 4:02:00 PM PDT by TomGuy
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To: BenLurkin
The problem is the debt. Japan's debt-to-GDP ratio has been way too high for a while now (245%... ~$12T Debt/$5T GDP)... and thanks to Obama, ours is now about 110% (~$20T Debt/$18T GDP). Servicing the debt becomes more expensive as interest rates go up. We may be able to handle it, but Japan will have the much greater challenge... and Japan is large enough to have a global impact if they cannot stay afloat.

(The somewhat good news is that Japan's government owns almost half of that debt, unlike China owning most of ours.)

6 posted on 05/23/2018 4:02:13 PM PDT by Teacher317 (We have now sunk to a depth at which restatement of the obvious is the first duty of intelligent men)
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To: MUDDOG

> At least with interest rates up, I think I’m making money (even though I’m not!). <

I recently got a flyer from my local bank. They suggested that I open a “Junior Savings Account” for my children or grandchildren. The flyer said it would teach the child a lesson about the importance of saving.

The Junior Savings Account pays an interest rate of 0.10% (that’s not a misprint). So if a kid deposits, say, $50 he’ll get a nickel in interest each year.

I suppose that would teach the kid a lesson. But probably not the one the bank was hoping for.


7 posted on 05/23/2018 4:02:33 PM PDT by Leaning Right (I have already previewed or do not wish to preview this composition.)
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To: BenLurkin

Economic confusion abounds espically on the Left, among the feds, and in the FED.

Inflation is a hidden tax that drags down individual and aggregate quality of life and the economy as a whole.

The $4 trillion mostly unconstitutional feds don’t care. Nevertheless, the feds and their money printing machines are the ONLY source of inflation.

Dismantle the $3 trillion + unconstitutional portion of the feds and inflation would greatly if not totally disappear. Sustained prices would probably start going down for the first time since early 1900’s due to an uninflated money supply.


8 posted on 05/23/2018 4:05:08 PM PDT by Jim 0216 (MAGA by restoring the Gospel of the Grace of Christ and our Free Constitutional Republic!)
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To: Leaning Right
I suppose that would teach the kid a lesson.

Indeed!

The banks still pay a very low interest rate, but 6-month T-Bills are up to 2% (annual).

You can buy them through the Internet, and hold them in a US Treasury e-account.

9 posted on 05/23/2018 4:11:25 PM PDT by MUDDOG
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To: BenLurkin

So your savings and wages get destroyed by 2% per year.


10 posted on 05/23/2018 4:15:27 PM PDT by PGR88
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To: TomGuy
I have noticed shrinkflation has again hit some of the products in the grocery stores -- reducing content amounts while keeping prices relatively the same.

Burns my behind that they do that and worse, that people don't understand it but instead keep reacting to shelf price rather than unit price.

11 posted on 05/23/2018 4:20:52 PM PDT by Dahoser
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To: Revel

“But the FED never had any respect for the law and it works for bankers.”

The bankers set it up. Legalized theft.


12 posted on 05/23/2018 4:29:12 PM PDT by dljordan (WhoVoltaire: "To find out who rules over you, simply find out who you are not allowed to criticize.")
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To: Leaning Right
From a 1957 copy of Punch.... What Are Banks For
13 posted on 05/23/2018 4:31:09 PM PDT by mewzilla (Has the FBI been spying on members of Congress?)
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To: mewzilla

Ignore above. Doctored version. Reprint below...

https://hammeroftruth.com/2004/what-are-banks-for/


14 posted on 05/23/2018 4:32:49 PM PDT by mewzilla (Has the FBI been spying on members of Congress?)
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To: BenLurkin

Sure doesn’t measure gasoline.


15 posted on 05/23/2018 4:42:53 PM PDT by Luke21
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To: TomGuy
I have noticed shrinkflation has again hit some of the products in the grocery stores -- reducing content amounts while keeping prices relatively the same.

It is incredible. I want to eat healthier but still have tasty stuff, and they have new veggie substitutes for fries and tater tots. The bag looks okay until you pick it up. It is wide on the front but verrrrry thin. There is hardly anything in it. Then I see the price, and put it back.

The "how much for how many" reaction happens to me more than once on my grocery outings.
16 posted on 05/23/2018 4:55:01 PM PDT by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
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To: BenLurkin

Idiotic. You don’t monkey with inflation. It gets away from you, and you get stagflation. Ask Nixon how that worked out.


17 posted on 05/23/2018 4:58:41 PM PDT by RinaseaofDs
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To: BenLurkin

The Maduro Maneuver.


18 posted on 05/23/2018 5:01:30 PM PDT by SpaceBar
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To: Revel; BenLurkin

>
If you read the Mandate for the FED it says that the FED is to maintain Zero percent. But the FED never had any respect for the law and it works for bankers. Not the American people.
>

Fed ‘mandate’?? I’m still trying to figure where Congress has ANY authority to bequeath Constitutional authority to ANY unelected entity, the gold confiscation of the early 20th, ‘anything BUT gold and silver’, etc.


19 posted on 05/23/2018 5:03:58 PM PDT by i_robot73 (One could not count the number of *solutions*, if only govt followed\enforced the Constitution.)
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To: Teacher317

>
The problem is the debt. Japan’s debt-to-GDP ratio has been way too high for a while now (245%... ~$12T Debt/$5T GDP)... and thanks to Obama, ours is now about 110% (~$20T Debt/$18T GDP). Servicing the debt becomes more expensive as interest rates go up. We may be able to handle it, but Japan will have the much greater challenge... and Japan is large enough to have a global impact if they cannot stay afloat.

(The somewhat good news is that Japan’s government owns almost half of that debt, unlike China owning most of ours.)
>

No. The problem is unconstitutional taxation and SPENDING.

There needn’t exist a ‘debt’ (or, long for any length of time) were the Constitution followed.


20 posted on 05/23/2018 5:05:35 PM PDT by i_robot73 (One could not count the number of *solutions*, if only govt followed\enforced the Constitution.)
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