Inflation is the period for the year 2022. Rising prices of goods and services are at their highest level in 40 years, significantly affecting the purchasing power of households. To provide relief to consumers, the Federal Reserve has launched an aggressive monetary policy that will lower its interest rates.
Economists see monetary policy in other regions of the world as well, particularly in Europe with the European Central Bank (ECB) at risk of a so-called hard landing for the US economy. The Fed remains so aggressive in its monetary tightening.
Many companies have passed their rising costs on to consumers by raising the prices of their products, while there are also several companies that have started laying off workers Alphabet GOOGLE Get Alphabet Inc Reports The parent company of internet giant Google has just- Just warned that the company is likely to become 20% more efficient in the near future than it is today.
We try to understand the macroeconomy. We feel very uncertain about that, CEO Sundar Pichai said on September 6 at the 2022 Annual Code in Los Angeles. Macroeconomic performance is related to advertising spend, consumer spending, etc.
Despite the warnings, the Fed has decided to continue its fight against inflation, essentially cementing the case for a 75 basis point increase for the third time in a row during its last public remarks ahead of the September 21 policy meeting.
We obviously need to act as strongly as we are now and we need to keep at it until we’re done, Powell said on September 8. The Fed recognizes and accepts responsibility for price stability.
CME Group’s FedWatch is pricing it as the third in succession with an 86% chance of growth of 75 basis points as investors look for the so-called terminal fed funds rate before stopping Powell’s rise to the world’s richest man and will reach 4% . Elon Musk believes that if the Fed goes ahead, the market now expects the institution to cause deflation with interest rate hikes.
TSLA, CEO of EV maker Tesla, said the Fed rate hike would reverse the threat of deflation. For Schiff, a large rate hike by the Fed could lead to hyperinflation and a severe recession. It risks #hyperinflation. High debt payments result in severe #recession federal budget deficits. An explosion in the US and a collapse in property prices would lead to a worse financial crisis than in 2008.