Fed is 'locked' on holding rates steady, plus how immigration affects inflation: Harvard economist
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- Опубліковано 9 чер 2024
- Ahead of the highly anticipated Federal Reserve decision on interest rate cuts this Wednesday, investors are fixated on the upcoming release of the May CPI report. Harvard's Kennedy School of Government Professor Jason Furman joins Catalysts to offer his perspectives on the data and rate cut expectations.
Furman believes the Fed is "locked for no move this month," as the decision and CPI data are scheduled for release on the same day, leaving them unable to respond. He acknowledges that regardless of the CPI data's outcome, the issue is that while some months yield favorable inflation prints of 2%, "the bad months it's way above 2%, that means it's averaging out to a decent amount above 2%." However, Furman anticipates that a rate cut could potentially materialize come December.
"Some of this inflation is probably embedded in expectations," Furman told Yahoo Finance, adding: "High wage growth leads to high price growth, which in turn leads to high wage growth, and it's a staggered process. So in the best-case, it's gonna take a while for it to asymptote itself back down towards two [percent]."
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It's not inflation if corporations post record profits. I don't know how many times this needs to be said but, apparently it's a lot.
The wealth gap has become a canyon.. there's no coming back from this
right. this is the year to pay off debt if you can. dont get left behind. it's about to get "oogly" quick
The middle class did it, and blamed the poor
People are also retiring at a Record Pace
Been there done that.
When was the last time inflation was 2%? It has not been 2% for about 3 years, last I checked.
Will see on June 12th, cooler would be good
It going to get worst in the US June 9 the agreement between Saudi oil pegging to the Fiat US Dollar ended GET YOU PHYSICAL GOLD AND SILVER NOW.
Fake news
@@vikashjain9336 You need to get your head out of the sand. Saudi Arabia has declined to renew the agreement. That is truth so stop being naive and learn how to deal with truth.
What makes illegals think they can survive our inflation
Trump will claim it was him if it’s December
Close the border anyone?
We have a border?
@@kinpatu No. The entire world has no border.
Yes
Which border
lmao 'yo see high wage growth leads to high price grouth', this furman kinda scholars who smear a demand for raise wages as the trigger of inflation are pathetic af, look, before he makes this conclusion gotta figure out 'chicken and eggs' theory, or at least explain why government can't stop printing money and creating debt?