William J. Luther
-
December Inflation Meets Expectations
The latest inflation data from the Bureau of Economic Analysis largely confirm market expectations. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, […]
-
CBDCs Undermine Financial Privacy
Artist’s concept of a central bank digital currency. When it comes to designing digital currencies that protect the identity and transactions data of their users, developers have made a lot […]
-
Inflation Remained Below Target in August
Federal Reserve Building in Washington DC . When the Federal Reserve’s Federal Open Market Committee (FOMC) voted to lower its federal funds rate target last week and thereby begin the process […]
-
Fed Rate Cuts: Better Late than Never
Federal Reserve Chair Jerome Powell at a press conference. 2024. The Federal Reserve’s Federal Open Market Committee (FOMC) announced a 50 basis point cut in its federal funds rate target […]
-
Prices Decline in May, Monetary Policy Tightens
“Prices today are 8.9 percentage points higher than they would have been had the Fed hit its 2-percent inflation target since January 2020.”
-
FOMC Holds Rates, Revises Forward Guidance
“Just as the FOMC was slow to adjust policy when inflation surged in late 2021, it will be slow to adjust policy as inflation returns to and falls below its target in 2024.” ~William J Luther
-
Federal Reserve Raises Rate Target, Likely To Pause For Some Time
“In March, the median FOMC member projected the federal funds rate target would close the year above 5.0 percent. But the federal funds futures market is pricing in better-than-even odds that the target rate is less than 5.0 percent following the September meeting.” ~ William J. Luther
-
Inflation Slowed in February, But Remained High
“Recent experience should prompt calls for the Fed to adopt a symmetric average inflation target when it reevaluates its mandate in 2024 and 2025.” ~ William J. Luther
-
Fed Raises Rate, But Signals Potential Pause in May
“In 2021 they were looking for help from recovering supply chains. Now, they are looking for help from tight financial markets. It’s time FOMC members help themselves — or, God help us all.” ~ William J. Luther
-
Inflation Surges in January
“How high rates will ultimately go depends on how inflation evolves over the next few months — and how quickly the Fed reacts to restore confidence in its longer term-inflation projections. The January PCEPI release marked a step in the wrong direction.” ~ William J. Luther
