William J. Luther
Inflation Declined in March, But Remains High
“Market participants continue to expect the Fed will cut its federal funds rate target this year — just not anytime soon.” ~ William J. Luther
Inflation Remained Elevated in February
“Market participants continue to expect three cuts this year — and that those cuts will begin in the first half of the year. But they have adjusted the odds.” ~William J. Luther
Is Inflation on the Rise Again?
“The Fed should be looking ahead and adjusting monetary policy in light of its forecasts. Instead, its eyes are fixed on the rear-view mirror.” ~William J. Luther
Inflation On Target in December
“Monetary policy remains very tight. Interest rates are much higher than they were just prior to the pandemic. And the Fed is no longer accommodating expansionary fiscal policy.” ~William J. Luther
Inflation Undershoots Fed Projections
“The FOMC changed course last week, foregoing a previously projected rate hike and projecting deeper rate cuts in 2024 than previously anticipated. But those rate cuts may come too late.” ~William J. Luther
FOMC Holds Rates, Revises Projections
“After months of worrying that they had not yet done enough, FOMC members now seem to think they have a handle on inflation and will see it gradually return to 2 percent. Let’s hope they are correct.” ~William J. Luther
Inflation Remains High in September
“The Fed should keep monetary policy tight as inflation returns to its 2-percent target. But if it tightens too much, it will push the economy into an unnecessary and painful recession.” ~William J. Luther
Inflation was Worse than We Thought
“Although Fed officials were late to tighten monetary policy, their efforts over the last year appear to have worked. The risk today is that monetary policy is too tight—and will remain so for too long.” ~William J. Luther
Fed Continues to Signal Another Rate Hike
“If core inflation is more or less on track, why are most FOMC members projecting another rate hike?” ~William J. Luther
Inflation is Back on Target
“People have renegotiated their wages and purchase orders with those new expectations in mind. To course correct at this late stage would amount to a very painful contraction.” ~ William J. Luther
