United States Federal Reserve Board Governor Philip Jefferson (pictured) expressed gratitude for being nominated for the position of vice chair of the Fed’s Board of Governors, pledging to remain attentive to the challenges facing the economy, including inflation, banking sector stress and geopolitical instability if he is elected. Jefferson further reiterated his commitment to using his expertise to pursue the goals assigned to the Federal Reserve by Congress, namely maximum employment and price stability.
Fed’s Cook: Inflation grave threat to US economy
United States Federal Reserve Governor Lisa Cook will tell the Senate that high inflation is a “grave threat to sustaining the expansion of the American economy,” according to her prepared remarks released on Tuesday. She will vow to stay focused on inflation “until our job is done” if elected to the Fed’s Board of Governors. Cook will say that the US economy is at a “critical juncture” and that the Fed must keep monitoring inflation but also stresses in the banking sector. She will reiterate that the US banking system is “sound and resilient” but that it can be impacted by wider geopolitical uncertainty.
Fed’s Barkin: Inflation stubbornly persistent
Federal Reserve Bank of Richmond President Thomas Barkin said on Friday that inflation in the United States “has proven stubbornly persistent.” “It’s hard to say we’re approaching our target when we haven’t yet hit it even for one month” since the introduction of tighter monetary policy, he noted in a speech before Maryland Government Finance Officer Association, adding that he has yet to be “convinced, both that demand is settling and that any weakness is feeding through to inflation.” Barkin pointed out that, if upcoming data disappoints, he would be “comfortable doing more” on monetary policy even if it “creates the risk of a more significant slowdown.”
Fed: Job market dictates inflation in some sectors
Chances for slowing down price growth for core services that exclude housing in the United States could be contingent on a “further easing of tight labor market conditions,” the US Federal Reserve’s Federal Open Market Committee (FOMC) stated in its new Monetary Policy Report released on Friday. The overall jobs market in the country is still “very tight,” but labor demand has “eased in many sectors” and labor supply has improved, the Fed noted. There is “considerable uncertainty” regarding upcoming monetary policy moves, the central bank also warned. Addressing the recent commercial banking crisis, the Fed revealed that “the broader banking sector maintained substantial loss-absorbing capacity and ample liquidity” despite the turmoil. NN: The stock market is in acute denial. The Fed is not done raising Fed Fund rates. THE CORE INFLATION RATE IS RUNNING OVER 5%. , Inflation is still way above the Feds target of 2% and they will not be raising the target. In fact the only thing they will be raising are Fed Funds Rate. Certainly not lowering rates as Wall Street believe. I am reminded of a poor soul on death row having his last meal. As he was eating a tube of ice cream they came to take him to the death chamber. He handed the half eaten tube to a guard and asked him to put it in the freezer. The surprised guard asked him why? The dead man walking replied i want to finish it when i get back. This Wall Street stock market rally is a half eaten tub of ice cream, on stock market death row, that will soon be melting in the blazing sun of further rate increases.