Quote:
Originally Posted by Chicks
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The subject in its entirety may well be above your comprehension level. If "inflation is over", someone forgot to
tell the Fed:
The Federal Reserve is expected to ultimately cut interest rates in 2024, but in a measured way and with action weighted toward the second half. Today, the Fed Funds target rate is 5.25% to 5.5%. Markets expect that to fall by approximately 1% by the end of 2024 — as assessed by the CME FedWatch Tool, which measures the implied expectations of the debt markets. The current range of outcomes for rates suggests a likely figure between 4% and 5% for short-term rates by December 2024.
The Fed’s own more recent projections from September 20 are more hawkish than the market’s view. They suggest rates may not decline quite as much and fall to the 4.% to 5.5% range by December 2024.
In other words, no one at the Fed has stated if and when rate cuts would be considered appropriate, and confirmed the timing of those cuts.
Also, the author of your quoted article bases his "inflation is over" comment by looking only a "Core CPE". That's only part of the data that the Fed looks at.
October’s CPI report saw headline inflation cool to a 3.2% annual rate as energy prices fell. However, stripping out food and energy, the underlying rate is 4.0%. Importantly, shelter costs rose more slowly than many months of 2023, which is important given the category’s weight in the series. These shelter cost trends may reassure the Fed. Still, the inflation rate, though decelerating for much of 2023, is still well above the Fed’s 2% annual inflation target, and services inflation remains fairly high. As such, Fed officials have stated that they have no plans to cut rates in the near term.
Like is said earlier, you're great at snide remarks but you suck at comprehending facts.