Moonlight23
2022-11-01

Fed has no choice but to raise rates due to high inflation rates. Any slowdown in the current rate of increase in interest rates might change sentiment, but does not change current macro conditions (ie. lower inflation rates)- in fact, it might even encourage more spending leading to feds needing to raise I/r even higher to tame inflation. would be prudent to be wary of any rallies and invest only what you can afford to lose, less the tide turns against your positions and you get caught between the rock and the hard place

How to Interpret Powell's Testimony?
Federal Reserve Chairman Jerome Powell is scheduled to testify before Congress on 7th and 8th March. Powell on Tuesday cautioned that interest rates are likely to head higher than central bank policymakers had expected. The stock market plunged after his speech. Some investors argue that the market is over-reacting. --------- [Topic] How do you interpret Powell's testimony? How do you expect Powell's testimony tonight? How will the testimony affect rate hike expectations?
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Comments

  • PorterLamb
    2022-11-01
    PorterLamb
    The Federal Reserve and the Biden administration do not seem to share the same view. If the policy of the Federal Reserve is followed, the inflation rate will gradually decline. The premise is that the Biden government has not given new obstacles.
    • PorterLambReplyMoonlight23: 
      The Biden government solves the income problem by giving people money, but this is an important reason for inflation.
    • Moonlight23: 
      what sort of obstacles are you referring to? would love to hear your views
  • DaisyMoore
    2022-11-01
    DaisyMoore
    You're right. The main goal of the Federal Reserve is to reduce inflation and maintain price stability. However, the Federal Reserve cannot be too anxious, or it will cause serious adverse consequences.
    • Moonlight23: 
      the main worry here is to prevent a recessionary climate. to do this the feds will have to balance the need for bringing down inflation with the GDP growth they are sacrificing with the increase in borrowing cost. I do agree that the Feds cannot rush things, but it does make me wonder how long more?
  • fishinglo
    2022-11-02
    fishinglo
    Fed only knows one way to tame inflation and it is failing so they double down.
    • Moonlight23: 
      what other ways of taming inflation would you suggest the feds take? Central bank can only influence inflation thru either exchange rate or interest rate (monetary policies). In order to tame inflation, both monetary and fiscal policies have to go hand in hand.
  • Kaixiang
    2022-11-01
    Kaixiang
    Thanks for sharing!
  • Jennifer58
    2022-11-01
    Jennifer58

    Nice 

  • 紫凤凰
    2022-11-01
    紫凤凰
    好的
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