Ask any American in the street about ‘inflation’….
They will look at you like ‘WTF”?
If you ask them about what they pay for goods?
They WILL give u a response….
If you go on to ask about interest rates?
They are sure to answer…..They Are TOO High…
And THAT IS where the Fed comes in….
By signalling that they will begin to lower the price for money to the banks?
THAT will signal and already has started a lowering of interest rates for cars, homes and YES….
Consumer Prices….
That….
Could be the key to allow Americans to turn to other things and help President Biden start a recovery for the upcoming 2024 Presidential Election that he needs to win to keep America in one piece….
Powell cautioned on Wednesday that it was “far too early to declare victory” in the battle against inflation. The annualized inflation rate is still higher than the Fed’s target of 2 percent.
But the Fed’s projections now assume three interest rate cuts in 2024. Powell himself told a news conference that the central bank was keenly aware of the risk that “we would hang on too long” without lowering rates.
Those comments came as the Fed held interest rates steady — a decision that helped propel the Dow Jones Industrial Average to its first ever close above 37,000.
Rate cuts next year would make homes more affordable, ease the purchase of other big-ticket items like cars, and make credit card debt less burdensome — all factors that could boost public sentiment on the economy and help the president.
So far, a strong jobs record for Biden has not been enough to overcome public pain about rising prices. An Economist/YouGov poll released Wednesday showed just 39 percent of Americans approve of Biden’s performance on the economy while 52 percent disapproved….
…
“A year ago economists thought there was a 100 percent chance of a recession and now the Fed is signaling we are going to have three rate cuts, possibly next year, and that’s on the back of a strong GDP report and strong employment numbers,” said Brendan Duke, the senior director for economic policy at the liberal Center for American Progress.
“When it comes to how Americans feel about the economy, these rate cuts have been sort of the missing piece,” Duke added. “They are going to unlock a rising stock market and lower mortgage rates…