William J. Luther

William J. Luther

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9/28/24

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 […]
William J. Luther

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9/18/24

Fed Rate Cuts: Better Late than Never

“A 50 basis point cut in its federal funds rate target on Wednesday marks a reversal at the Fed.” ~William J. Luther
William J. Luther

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9/18/24

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 […]
William J. Luther

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8/30/24

Inflation Slightly Below Target in July

“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
William J. Luther

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8/9/24

Competing Narratives on Real Wages

“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
William J. Luther

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8/1/24

Should the Fed Get Credit for Lower Inflation?

“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
William J. Luther

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7/26/24

Inflation Remained Low in June

“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
William J. Luther

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6/28/24

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.”
William J. Luther

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6/12/24

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
William J. Luther

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6/1/24

Inflation Continued to Decline in April

“While inflation is declining once more, members of the Federal Open Market Committee (FOMC) have suggested rates would need to remain high for longer than they had previously projected.” ~William J. Luther