From WSJopinion: By talking about policy rules the Fed can do a much better job of explaining what it will take to restore price stability, write Jeffrey M. Lacker and Charles I. Plosser
The Federal Reserve’s delayed response to inflation has hurt the economy and the central bank’s credibility. This helps explain Chairman Jerome Powell’s forceful affirmations of the Fed’s commitment to its 2% inflation target. Bringing inflation back down to target will involve short-term pain, but letting it run at elevated levels will prove more costly in the long run.
Both the Fed and financial market participants believe that the central bank will succeed in restoring price stability. They increasingly disagree, however, about what it will take to do so. Markets now project a federal-funds rate peaking below 5% and then falling later this year. The Fed’s projections have the funds rate rising above 5% and staying there into 2024.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Recession 2023: Jerome Powell's legacy will dictate inflation, stock market, economyInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Leer más »
Why this week's Fed vs. markets showdown could decide fate of early 2023 stock rallyThe Federal Reserve and investors appear to be locked in a stare-down. What Fed Chair Jerome Powell says Wednesday could determine the winner.
Leer más »
The Fed and the stock market are set for a showdown this week. What's at stake.The Federal Reserve and investors appear to be locked in a stare-down. What Fed Chair Jerome Powell says Wednesday could determine the winner.
Leer más »
4 ways Powell could tell markets the Fed isn't ready to pivotSome economists think that Fed Chairman Jerome Powell will want to push back against expectations the central bank is almost done with rate hikes.
Leer más »
From the Big 12 to the NFC title game, the legend of Brock Purdy plays onPurdy faced off with Jalen Hurts once before, when Iowa State played Hurts's Oklahoma team in 2019. What might that game tell us about Sunday's?
Leer más »
Galveston police chief placed on administrative leave as internal investigation plays out, city announcesBREAKING: The city of Galveston’s police chief has been placed on administrative leave and is now under investigation after officers reportedly raided a family's home in search of a murder suspect who has since been proven innocent.
Leer más »