Posted on 04/05/2023 7:17:26 AM PDT by Twotone
Federal Reserve Bank of Cleveland President Loretta Mester said on Tuesday that the U.S. central bank likely has more interest rate rises ahead amid signs the recent banking sector troubles have been contained.
To keep inflation on a sustained downward path to 2% and keep inflation expectations anchored, Mester said she sees monetary policy moving “somewhat further into restrictive territory this year, with the fed funds rate moving above 5% and the real fed funds rate staying in positive territory for some time.”
“Precisely how much higher the federal funds rate will need to go from here and for how long policy will need to remain restrictive will depend on how much inflation and inflation expectations are moving down, and that will depend on how much demand is slowing, supply challenges are being resolved, and price pressures are easing,” Mester said in a speech before a group of economists in New York.
The Fed in late March raised rates by a quarter percentage point, to between 4.75% and 5%. The decision was haunted by banking sector troubles that led policymakers to say that a tightening in financial conditions would likely weigh on economic activity.
“I was very comfortable with moving ahead” with the rate rise, given that authorities had taken steps to manage risks coming from banking sector troubles, Mester said in remarks following her speech.
At the policy meeting, officials also penciled in a single additional rate rise for this year, as the Fed continues to boost the cost of short-term borrowing in a bid to lower inflation.
(Excerpt) Read more at cnbc.com ...
Funny how prices were little changed for many decades before the Federal Reserve was created to steal our futures.
Perhaps the nation should have a balanced fiscal year amendment wherein elected federal constitutional officers would become ineligible for government-based employment after their existing terms end if a fiscal year during their current term of office ends in the red.
Saw a HUGE jump in interest earned in my MM account due to these rate hikes.
Between end of Jan and end of Mar, including a $10,500 withdrawal and no deposits, interest went from $1.54 to $32.28.
The Fed has already indicated that they will raise .25% in May and then they’re done with decreases to follow after that. Otherwise the big 5 banks are going to fail.
Gotta get it above the PPI.
Great, you can take the family to McDonalds “for free.” Once.
Who first uttered the phrase “too big to fail?” Has to be a fascist.
I’m praying the big 5 fail because they hold all the shorts on gold and silver. Once those shorts go bye bye gold and silver will sky rocket.
Where did you get that info?
J.P. Morgan has been suppressing gold and silver prices for a few decades. It’s common knowledge and on the internet.
Thx
Its pretty commonly reported by the PM guys. Its not news. Right now they are running both gold and silver up then they will short it and make a bundle.
Yes, silver should be $500 per oz and gold should be $4,000-$5,000 per oz if it was not being manipulated.
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