WSJ's Nick Timiraos discusses the Fed's path to rate cuts
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- čas přidán 9. 06. 2024
- Amid the ongoing uncertainty surrounding Federal Reserve rate cut expectations, The Wall Street Journal's Chief Economics Correspondent Nick Timiraos joined Yahoo Finance to share his outlook on the central bank's monetary policy.
Timiraos outlines three potential scenarios the Fed may face. In the first scenario, he describes strong growth with inflation "making steady progress'" towards the Fed's target. The second scenario involves strong growth but "inflation [remaining] sticky" and still higher than the target. Timiraos warns that the third and worst-case scenario is "growth contraction, with high inflation."
Addressing the Fed's possible policy responses, Timiraos notes that with the federal funds rate above the inflation rate and a slowdown in wage growth, "it's gonna require them to soften the labor market more." However, he acknowledges that the labor market is already showing signs of cooling, prompting the key question, "what's happening with inflation?"
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I really question how anyone can even fathom the idea of rate cuts in any form in 2024 at this point. It's clear that the Fed needs to raise rates otherwise it is basically pouring gasoline on a fire with any possible cuts making it worse.
People want to be optimistic. They want gains so they believe in the cuts. It is truly just herd mentality
why did the Fed not include the food and energy in the CPI report for Inflation? what are the advantages and disadvantage with or without that
Rates not going down with this ongoing pressure on oil
Why did he say “you know” at 0:29? That is why I’m watching. I don’t know.
If any serious war broke out. Oh btw, on the demand curve has been curtail especailly big ticket items, while transfer wealth from poor loan borrow to bond holder earing 5.5 % risk free. In addition, dispoal income has been lower due to all type of insurnace hikes 30%.
The irony is that the rate hikes are adding to inflationary pressures & by the way there is no wage price sprial so the belief that wages are growing too fast is somlly not true.
Up up and away we go 👍😁🤔😉😉inflation
Cut today
WHat is Nick Timiraos smoking. Dude needs to be realistic.
Up up and away 🤔😉🙏👍😁😳🫣 rates