Federal Chair Jerome Powell discusses monetary policy. Businesses often review and watch what the Federal Reserve is doing in order to understand how to set their own strategies and policies. If inflation is high it may not be the best time to borrow money, make large purchases, etc...Some of the problem is driven by supply chain issues that have gotten a little worse since the Russian-Ukrainian conflict.
It is expected that we will start to return back to normal in the near future (next couple of years). I'm curious if we will start to see a decline in rates in the next few months as new supply networks are created? I don't really have a great logic for it but that I suspect conflict will either subside or get substantially worse (It could really go either way.). If there is a dip its not going to be right back to normal because the larger supply chain issues haven't been resolved until companies start operations back in the U.S. (and develop new supply networks. Adaptive Supply Chain, Regional Networks).
A few key points.....
-Price stability and strong labor market.
-Discussion on reducing balance sheet.
-Raise interest rates to reduce inflation.
-Unemployment 3.8%
-Job growth across different demographic groups.
-1.7 job openings per person looking for work.
-Mixed impact of oil.
-Feds will adjust to try and return to 2% inflation in a couple of years.
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