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, […]
The Federal Open Market Committee announced on Wednesday it would hold its federal funds rate target at 4.25 to 4.5 percent, ending the three-meeting rate-cut streak that began in September […]
Inflation picked up in October, but remains more or less on track. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew at […]
“Financial privacy is very important for a free society. What we do reveals much more about who we are than what we say.” ~William J. Luther
“More cuts are projected for 2025, but not enough to return the stance of monetary policy to neutral.” ~William J. Luther
“A 50 basis point cut in its federal funds rate target on Wednesday marks a reversal at the Fed.” ~William J. Luther
“The federal funds rate target range is likely to be at least a full percentage point lower by the end of the year. That would significantly reduce the distance the Fed needs to travel in order to return monetary policy to neutral.” ~William J. Luther
“Democrats want to take credit for the higher real wages. Republicans want to deny that real wages are higher. Both are obscuring the facts.” ~William J. Luther
“Labor market developments cannot explain the decline in nominal spending growth. Tighter monetary policy can… Given the lags of monetary policy, the Fed may have already undershot its target.” ~William J. Luther
“Despite the progress made on inflation over the last three months, and the risk of overtightening noted by Waller and Powell, the FOMC is unlikely to cut its federal funds rate target next week.” ~William J. Luther