Oh yea and the bean counters say inflation dropped ?
Maybe gas prices…
But consumer prices are STILL reaching for the sky folks….
The Ameriican economy is NOT getting better as the Fed chair(And Biden) knows….
Jerome H. Powell, the chair of the Federal Reserve, warned that the central bank’s campaign to beat back the fastest inflation in decades would come at a cost to workers and overall growth. But he emphasized that the Fed must continue raising interest rates — and keep them elevated for a while — to prevent rapid price increases from becoming a more permanent feature of the American economy.
“Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance,” Mr. Powell said in a speech on Friday. “While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.”
He then added: “These are the unfortunate costs of reducing inflation.”
Mr. Powell, who was speaking at the Federal Reserve Bank of Kansas City’s annual conference near Jackson, Wyo., used his most closely watched speech of the year to underline both the Fed’s dedication to bringing inflation back under control and to emphasize that its policy moves so far have not been enough to achieve that goal. Put simply, more will need to be done to tame rapid price increases…
…
Stocks on Wall Street slumped on Friday, after Jerome. H. Powell, the chair of the Federal Reserve, warned that the central bank’s campaign to lower inflation would be painful for households and businesses.
The S&P 500 fell by as much as 2 percent, with every sector of the index lower. Bond investors also quickly adjusted for more interest rate increases from the Fed, with the two-year Treasury yield, which is sensitive to changes in Fed policy, rising close to its highest level of the year at 3.44 percent.
“While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” said Mr. Powell during a speech at the Federal Reserve Bank of Kansas City’s annual conference in Wyoming. “These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”
Investors had begun to expect Mr. Powell to caution that the central bank’s task of fighting inflation is far from complete, and it intends to continue raising interest rates, increasing costs for companies and cooling the economy. In anticipation, they pulled nearly $1 billion from funds that invest in U.S. stocks for the week through Wednesday, according to data from EPFR Global. Funds that buy low-rated bonds, known as junk bonds, saw more than $4 billion of withdrawals….