Powell's written statement to congress this morning.





Federal Reserve Chair Jerome Powell said Wednesday that the central bank’s policy-setting committee still isn’t convinced that continued progress toward their 2% percent inflation objective is “assured,” and that it won’t make sense to cut interest rates until it is confident.

“The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” Powell said in a statement prepared for delivery to the House Committee on Financial Services.

Powell’s written statement didn’t include any further guidance on timing or the conditions that would need to be met to convince Fed officials that inflation was on a sustainable path to 2%. Several policymakers have indicated they’d like to see a longer period in which inflation is cooling and price pressures diminish more broadly, particularly in the rents and services sectors of the economy, before easing policy.

While the central bank believes that the policy rate is likely at its peak for this tightening cycle, Powell said that the Federal Open Market Committee continues to “assess the incoming data, the evolving outlook, and the balance of risks.”

“Reducing policy restraint too soon or too much could result in a reversal of progress we have seen in inflation and ultimately require even tighter policy to get inflation back to 2 percent,” Powell said. “At the same time, reducing policy restraint too late or too little could unduly weaken economic activity and employment.”

It seems most don't believe what Powell is saying.

IMHO if he cuts rates the markets will react accordingly.


If they do it will be good for gold and Bitcoin. Price of gas will go the roof

After reading that letter I guess it makes me pessimistic and I really tend to think that there maybe a rate hike coming if the inflation doesn’t get back down soon.

Of course, average home costs in 1980 were under $48,000.

You could buy a brand new 4x4 pickup for $4-7k. (Or 75-100 good prime fox!)



Average home costs now run $387-412k depending on what source you use.

And that new truck is $60k or better. Or a WHOLE YEARS salary.

Don’t tell me we’re better off now!

With so much wealth or cash being used to buy many assets including land, other real estate etc. Interest rates are not an issue for them and nor is prices if they are choosing to invest and diversify their asset portfolio.
Interest rates (borrowing) is an issue for those that use a lot of credit either in business or non-business. The way many of our farmers around here are resolving the high prices to purchase farm assets is to form LLCs or LLPss to transfer assets over longer periods of time while the younger generation is earning enough revenue from the business to live and buy into the assets.Many times land assets are kept seperate from the other farm assets so that the acres can be rented by the LLC but not sold and then the land assets can transfer at deaths of the older generation with a stepped up basis.

Bryce

Never said we were better off now. Was simply pointing out what the situation was. As I stated land costs in our region, Avg. home costs around here are around $150,00 - 250,000.00. Almost half your stated cost. Interest rates today are cheap still compared to then.
Living here is more affordable than Minneapolis or Milwaukee, but wages are not as high either. As with the 80's vs 2024 so many variables, and life was as difficult then as it is difficult now for many. But life is full of choices, we choose, to live frugally then and now. We developed our home through a lot of sweat equity. Many today do not, won't or can't make those choices, depending on location and other variables.
Good prime fox I got $125.00 each for three in 1980.

Nobody else has probably been listening to powell these past couple days,,,,,

Myself, I find it super interesting

He’s great at answering the questions from elected folks even when questions are ridiculous!! It’s got too be painful!!

The guy is a smart smart man

Anyway kinda off topic and nobody is probably paying attention



Just wanted to add

Everyone agrees(Powell included) the Chinese economy is on life support,,,,,,,, doesn’t bode well for the fur industry.

We are about to find out

I have a brother who is the head loan officer over 11 banks. He is not expecting rates to be that low by the fall.

I find his talks interesting too. Especially the Q&A after a Fed meeting.

The financial journalists ask much better questions than congress.

Hopefully Hank Johnson didn't ask him about Guam !

Command economies tend to fail because they never provide what people actually want. Even an economy like ours has people in government who don't seem to understand this simple concept.

Surely it has flipped over by now.

I enjoy Q and A's also unless the questioners are irretrievably moronic.

especially with the rising sea levels and concentration of CO2 on one side of the island

I heard beach spots are allocated in such a way that sunbathers are evenly distributed on the perimeter of the island. This, of course, solves White's CO2 dilemma as well.

Well that's a relief !!