Matt Davies for September 26, 2022

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    Ballast  4 months ago

    Too bad the Fed is acting as if inflation was wage driven, instead of profit driven.

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    Rhonda Santis  4 months ago

    Robert Reich suggests that this isn’t the correct way to attack this particular inflation. Because it only works when the inflation is market driven… when it fact, he says, it’s driven by a lack of competition. Which the Fed can’t do anything to correct.

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    rionmorrison69  4 months ago

    I fail to see how making things MORE expensive is going to bring down prices.

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    superposition  4 months ago

    When all the world’s central banks are desperately trying the same thing, we should realize that we can’t keep electing obstinate incompetents to Congress.

    WASHINGTON, September 15, 2022—As central banks across the world simultaneously hike interest rates in response to inflation, the world may be edging toward a global recession in 2023 and a string of financial crises in emerging market and developing economies that would do them lasting harm, according to a comprehensive new study by the World Bank.

    Central banks around the world have been raising interest rates this year with a degree of synchronicity not seen over the past five decades—a trend that is likely to continue well into next year, according to the report. Yet the currently expected trajectory of interest-rate increases and other policy actions may not be sufficient to bring global inflation back down to levels seen before the pandemic. Investors expect central banks to raise global monetary-policy rates to almost 4 percent through 2023—an increase of more than 2 percentage points over their 2021 average.

    Unless supply disruptions and labor-market pressures subside, those interest-rate increases could leave the global core inflation rate (excluding energy) at about 5 percent in 2023—nearly double the five-year average before the pandemic, the study finds. To cut global inflation to a rate consistent with their targets, central banks may need to raise interest rates by an additional 2 percentage points, according to the report’s model. If this were accompanied by financial-market stress, global GDP growth would slow to 0.5 percent in 2023—a 0.4 percent contraction in per–capita terms that would meet the technical definition of a global recession.

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    monya_43  4 months ago

    The landing, when the balloon breaks, is REALLY going to hurt Uncle Sam. There’s GOT to be a better way!

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    preacherman  4 months ago

    Evidently, the FED’s aim is a bit off.

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    leonardonyc  4 months ago

    As usual this goverment capping the well after the kids drowned

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    willie_mctell  4 months ago

    Kill or cure. We don’t really have a remedy for inflation that doesn’t have severe side effects.

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    nyg16  4 months ago

    how much have hard working people have lost in there 401 k to bring the price of bread down 10 cents

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    jvscanlan Premium Member 4 months ago

    Much better than the UK where the new PM is cutting taxes to battle inflation

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    jvscanlan Premium Member 4 months ago

    Under the circumstances, COVID, broken supply and demand chains, the Ukraine war, and OPEC holding production down, and excessive GDP growth, eight and a half percent inflation is not bad at all.

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    cbedda  4 months ago

    wish he was using the ‘nasa dart’ – going to hurt and its missing the target.

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