Who thinks Powell went into hyper dove mode after talking to Yellen about cost to Govt of high rates

[David Donner]

The job of the Fed does not include insuring the cost of higher interest rates to the US Govt on the National Debt does not explode.
Obviously, high interest rates do that though.
We have all seen the charts of how much the interest payments, as a percent of the budget, explodes up with higher interest rates.
So, even though it is not part of the Fed Mandate, who thinks Powell blinked on interest rates after possibly Yellen talking to him about it.
I do.

 

[SunTrader]

In July of last year CPI reading was 9.10. On Tuesday it was 3.10

At what friggen point do you think Powell should get off pause and reduce rate, if not currently?

Well at least you didn't bring up coming election as yet another cause for dropping.

 

[zdreg]

In July of last year CPI reading was 9.10. On Tuesday it was 3.10

At what friggen point do you think Powell should get off pause and reduce rate, if not currently?

Well at least you didn't bring up coming election as yet another cause for dropping.

The inflation genie is still out of the bottle.

 

[allinrisk]

Markets will most likely be euphoric till next Fed meeting or if any shock of upcoming economic releases. The 10 day change from the last meeting of "it's premature to look for cuts next year" to having cuts on the table, is odd.

I don't think he'll keep this ultra dovishness and we might see a flip-flop of tones from the Fed next year.

 

[mervyn]

You know this is the rate of change, not the price level. Once Big Mac meal is costing $12.99, it won’t come back down to $8.99 anytime soon, if ever.

 

[SunTrader]

You know this is the rate of change, not the price level. Once Big Mac meal is costing $12.99, it won’t come back down to $8.99 anytime soon, if ever.

That's ok, I don't eat BigCrap's.

And of course I know what CPI is.

 

[tiddlywinks]

You vill eat zee bugs!

 

[murray t turtle]

You know this is the rate of change, not the price level. Once Big Mac meal is costing $12.99, it won’t come back down to $8.99 anytime soon, if ever.

%%
WE dont eat that, but since you mentioned it/LOL;
big chart on all USa states, BIG MAC sandwich peak to valley $7.09 peak to valley$4.19.
NO wonder he hinted of rate cuts, if he looks @ your measure.-[7-2023]
J Powell sings from the songbook ''Star of wonder, star of light, guide us by they perfect light''. One big mac is about 2 eggs in protein, not paying them for Cokes LOL

 

[savoir]

The Fed has now clearly signaled pause. In 2024 it will likely start the lowering cycle, which will obviously coincide with the election cycle. Recession will be the word for 2024.

 

[mervyn]

The Fed has now clearly signaled pause. In 2024 it will likely start the lowering cycle, which will obviously coincide with the election cycle. Recession will be the word for 2024.

the classic definition of two consecutive negative gdp growth is unlikely, but the mood is definitely here, waiting.