St. Louis Fed President James Bullard says that the Fed’s previous rate hikes have had only “limited effects” on inflation, calling for more increases. “Thus far, the change in the monetary policy stance appears to have had only limited effects on observed inflation, but market pricing suggests disinflation is expected in 2023,” he said. “To attain a sufficiently restrictive level, the policy rate will need to be increased further.” If the Fed continues tightening policy, J.P. Morgan economists expect a mild recession to occur in the second half of 2023.

CNBC/Jeff Cox
Fed’s Bullard says rate hikes have had ‘only limited effects’ on inflation so far

St. Louis Federal Reserve President James Bullard said Thursday the central bank still has a lot of work to do before it brings inflation under control.

A voting member on the rate-setting Federal Open Market Committee, Bullard delivered remarks centered on a rules-based approach to policymaking. Using standards set by Stanford economics professor John Taylor, Bullard insisted that the moves the Fed has made so far are insufficient.

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Reuters
J.P.Morgan predicts a mild U.S. recession next year

J.P.Morgan economists predict a “mild recession” in the United States in the back half of next year given expectations for the Federal Reserve to tighten monetary policy further in its battle against inflation.

The investment bank sees the economy contracting by 0.5% by the fourth quarter of next year, and possibly dragging into 2024. That is seen cutting 2023 U.S. gross domestic product (GDP) to 1%, almost half of its forecast for 2022.

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Fox Business/Daniella Genovese
Economy forcing majority of Americans to delay financial milestones

The majority of Americans are delaying financial milestones and even abandoning certain events and activities because of the current state of the economy.

According to a new survey from Bankrate, 53% of Americans have had to delay milestones such as home improvements and renovations as well as buying or leasing a car.

Meanwhile, 58% of Americans have had to miss out on certain activities such as postponing vacations and opting out of dinners with family or friends.

Continue reading, here.

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