Another speech from another doctoral economist asshole!
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The Boston Fed chief says more tightening will be needed
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Smaller rate moves can help reach ‘sufficiently restrictive’
Boston Federal Reserve Bank President Susan Collins said monetary policy is entering a new phase that could require smaller rate increases while officials figure out how high rates need to go to crush inflation, but she did not rule out another 75 basis-point increase. “With rates now in restrictive territory, I believe it is time to shift focus from how rapidly to raise rates, or the pace, to how high — in other words, to determining what is sufficiently restrictive,” Collins said Friday in remarks prepared for a virtual event organized by the Brookings Institution. Collins spoke days after the Fed lifted interest rates by 75 basis points for the fourth straight time. The move brought the benchmark rate to a target range of 3.75% to 4%. Fed Chair Jerome Powell told reporters after the two-day policy meeting that officials could soon move to smaller interest rate increases while ultimately taking rates to a higher level than previously expected.
“It is premature to signal how high rates should go,” she said, while noting that the Fed’s September rate forecasts “can be taken as a starting point of my current thinking, with the possibility of a higher path depending on incoming information.” NB: Reread this quote and tell me what the fuck does that shit mean. Remember this is coming from a voting member of the FED and part of the Fed Funds target setting committee. She sounds very confused to me.
Officials in September projected rates at 4.4% by the end of this year and 4.6% in 2023, according to their median forecast. The Boston Fed chief said that with interest rates now at restrictive levels that could slow growth, monetary policy is entering a new phase that could require smaller rate moves as policymakers balance their efforts to tame inflation with the risks that they tighten too much and spark a deep downturn. But she said another jumbo-sized hike should remain among the options on the table..
“In thinking about how to reach the level of the funds rate at which the Committee will deem appropriate to hold policy, I believe it is important for us to consider the various options for policy moves,” she said. “This will include 75 basis points, as well as smaller increments. I note that a 50 basis-point move was considered a large move in the past.”
While the Fed’s rate moves are hitting the housing market, inflation is still near the highest levels in 40 years. The labor market also remains tight, with the US economy adding 261,000 jobs in October, significantly above the 193,000 jobs expected, according to Labor Department data released earlier on Friday. Investors now see the Fed taking rates higher but with more incremental moves. Markets are pricing in a 50 basis-point hike in December, but they see rates peaking above 5.1% next year, according to pricing in futures markets. Fed officials will release new projections for rates and the economy when they meet again on Dec. 13-14. NN: SLOW DEMAND she says. Well how do you do that. Pretty simple for a person with a million dollar a year combines salary. Why you fuck people who have to earn a HONEST living. By driving the economy into a depression. I see Fed Funds hitting 6% in this insanity. I know how to make you money… at least i think so. Lock in the ever higher rates and pray for everyone else…… Fed Funds from zero to six in a year……..how about a 10% THIRTY YEAR MORTGAGE RATE FOR ADDED FUN