The Federal Reserve signals more to come even as it
slows rate increases.
https://www.nytimes.com/2022/12/14/business/economy/interest-rates-inflation-fed.html
https://www.nytimes.com/2022/12/14/business/economy/interest-rates-inflation-fed.html
How Long Should Powell Keep Raising Interest Rates?
Fed Officials Are Divided
https://www.wsj.com/articles/powell-federal-reserve-interest-rates-inflation-11670859520
https://www.wsj.com/articles/powell-federal-reserve-interest-rates-inflation-11670859520
Inflation Forecasts Were Wrong Last Year. Should We Believe Them Now?
https://www.nytimes.com/2022/12/12/business/economy/inflation-forecasts-historical-outlook.html
That is where Fed policy could come in. Companies can only charge more if their customers are able — and willing — to pay more. The Fed can stop that chain reaction by lifting interest rates to slow demand.
Policymakers have raised interest rates from near-zero at the start of 2022 to nearly 4 percent, and are expected to make another interest rate increase this week. Those moves have made it more expensive to borrow money to buy a house, finance a big purchase or expand a business.
The knock-on effects are now trickling through the economy: Fewer house sales could eventually mean less hiring in construction and manufacturing, which in turn would mean less spending in the local economies where would-be builders and factory workers live. As the job market slows down and wage growth moderates, demand is expected to weaken for everything from dinners out to air travel.
https://www.nytimes.com/2022/12/12/business/economy/inflation-forecasts-historical-outlook.html
That is where Fed policy could come in. Companies can only charge more if their customers are able — and willing — to pay more. The Fed can stop that chain reaction by lifting interest rates to slow demand.
Policymakers have raised interest rates from near-zero at the start of 2022 to nearly 4 percent, and are expected to make another interest rate increase this week. Those moves have made it more expensive to borrow money to buy a house, finance a big purchase or expand a business.
The knock-on effects are now trickling through the economy: Fewer house sales could eventually mean less hiring in construction and manufacturing, which in turn would mean less spending in the local economies where would-be builders and factory workers live. As the job market slows down and wage growth moderates, demand is expected to weaken for everything from dinners out to air travel.
From chicken wings to used cars, inflation begins to ease its grip
https://www.washingtonpost.com/business/2022/12/04/inflation-prices-going-down/
https://www.washingtonpost.com/business/2022/12/04/inflation-prices-going-down/
Workers Have High Hopes for Pay Hikes Next Year. Perhaps Too High
https://www.bloomberg.com/news/articles/2022-12-09/workers-may-lose-the-upper-hand-in-2023-job-market
https://www.bloomberg.com/news/articles/2022-12-09/workers-may-lose-the-upper-hand-in-2023-job-market
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