The Fed

A Soft Landing in 2023?

Update 661 — A Soft Landing in 2023?Jobs, CPI, Tracking Fed Plane in the Sky As we enter a new year, the economy appears to be on the mend. Last year, inflation began accelerating and stayed elevated throughout. As yesterday’s CPI report makes clear, prices continue a descent thanks (only in part) to the Fed’s …

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Fed Boosts Rate 50 BPs

Update 656 — Fed Boosts Rate 50 BPsIs Soft—and Swift—Landing in Sight? Today, the Federal Reserve announced a 50 basis point interest rate increase, bringing the borrowing benchmark up to a targeted range of 4.25-4.5 percent. This rate hike, a slowdown after four consecutive 75 point increases, suggests the Fed believes it may have a …

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Big Bank Bash on Hill

Two signal events occurred in the financial policy space this week. The big bank CEO hearings this week in the House Financial Services and Senate Banking Committees are becoming an annual event featuring both chieftains of banking and important consumers of other public policy issues. CEOs of seven major U.S. banks appeared before Congress and …

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CPI for June up 9.1%

Update 620 — CPI for June up 9.1%But Trends Complicate Inflation Story The CPI report for June, showing a 9.1 percent hike in prices from a year ago, up from 8.6 percent in May, may alarm some and immediately suggests another 75 basis point interest rate by the Fed at its next meeting, July 26-27. …

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Fed Fights Inflation, Recession Risk

Update 616 — Fueling Uncertainty:Fed Fights Inflation, Recession Risk Federal Reserve Chair Jerome Powell took the hot seat this week during the semiannual Humphrey-Hawkins hearings before Congress. Recently re-confirmed as Chair, Powell had to manage his way through cross examination regarding the Fed and inflation, following a hot 8.6 percent May CPI rise in inflation …

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Raising the Barr

Update 609 — Raising the Barr:Vision Behind Fed’s Supervision For the first time since its creation 12 years ago, the Federal Reserve’s Vice Chair for Supervision position will be filled by a Democratic nominee. Yesterday, Senate Banking held a confirmation hearing for Michigan Law Professor Michael Barr, an architect of Dodd-Frank, the law that established …

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Inflation Eases an Inch

Update 607 — Inflation Eases an InchBut Hits Home(s): Prices, Sales, Rents The main takeaway from yesterday’s CPI report: inflation remains high, though decelerating marginally. CPI increased for consumer goods by 0.3 percent in April, down from the 1.2 percent increase in March. Increases in prices for food, airline fares, new vehicles, and shelter contributed …

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