Tag: interest rates

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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Excerpt:

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

The Fed’s Dot Plot of Interest Rate Projections Show It’s Totally Confused

Mary Pat Campbell

Link: https://mishtalk.com/economics/the-feds-dot-plot-of-interest-rate-projections-show-its-totally-confused

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Excerpt:

The Fed’s Summary of Economic projections is far more interesting. I highlighted the median economic forecast in pink. Each dot represents the position of someone at the meeting.

Looking ahead to 2025, the Fed is clueless. 

Actually, that’s not a bad thing. Someone on the committee is likely to be correct.

Moreover, the results look like one of my favorite sayings: I don’t know and no one else does either, especially the Fed.

Author(s): Mike Shedlock

Publication Date: 14 Jun 2023

Publication Site: Mish Talk