Inflation slows but...........

[Kirk W]

U.S. inflation slows to 6.4%, but price pressures re-emerge

WASHINGTON —  

The pace of consumer price increases eased again in January, the latest sign that the high inflation that has gripped Americans for two years is slowing.

At the same time, Tuesday’s consumer price report from the government showed that inflationary pressures in the U.S. economy remain stubborn and are likely to keep inflation high well into this year.

[whj469]

That means higher interest rates?

[pjstough]

25 minutes ago, whj469 said:

That means higher interest rates?

Yes, the Fed wants to raise rates to drive down wages, which they believe is the cause of the inflation we are seeing.

[Kirk W]

1 hour ago, whj469 said:

That means higher interest rates?

Other Fed officials, speaking last week, stressed their belief that more interest rate increases are on the way. The Fed foresees two more quarter-point rate hikes, at its March and May meetings. Those increases would raise its benchmark rate to a range of 5% to 5.25%, the highest level in 15 years.

 

The financial markets envision two more rate increases this year and don’t expect the Fed to reverse course and cut rates until sometime in 2024. For now, those expectations have ended a standoff between the Fed and Wall Street investors, who had previously been betting that the Fed would be forced to cut rates in 2023 as inflation fell faster than expected and the economy weakened.

Edited February 14, 2023 by Kirk W
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