Tag: federal funds rate

Despite CPI Surprise to the Downside, Higher for Longer Interest Rate Outlook Holds

Mary Pat Campbell

Link: https://mishtalk.com/economics/despite-cpi-surprise-to-the-downside-higher-for-longer-interest-rate-outlook-holds/

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Two things on the Fed’s mind are the core rate of inflation (all items excluding food and energy) and rent. Both have proven stubborn.

Despite constant talk of falling rent prices please note that Rent of primary residence has gone up at least 0.4 percent, every month for 23 straight months!

The falling rent meme has been wrong for at least a full year.

Author(s): Mike Shedlock

Publication Date: 12 July 2023

Publication Site: Mish Talk

Fed Rate Hike Odds Jump to Full Point After the Hot CPI Report

Mary Pat Campbell

Link: https://mishtalk.com/economics/fed-rate-hike-odds-jump-to-full-point-after-the-hot-cpi-report

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Excerpt:

Yesterday, the market penciled in a three-quarter point hike. Today, the market expectation is for a full point hike.

The WSJ notes that would be the largest hike since the Fed started directly using overnight interest rates to conduct monetary policy in the early 1990s.

Author(s): Mike Shedlock

Publication Date: 13 July 2022

Publication Site: Mish Talk