Home 2022 The Fed is Data Dependent, Rate Hikes are Not Baked In

The Fed is Data Dependent, Rate Hikes are Not Baked In


#CPI #inflation #Fed #interest #economists #analysts #strategists,

Consumer prices in December rose the most year-over-year since Y 1982, feeding into the Fed’s guidance that it may need to raise interest rates 3X this year to combat inflation. But the last yr has taught investors an important lesson: forecasters have to stay humble, and nimble meaning there’s no guarantee that 3 hikes will be necessary and happen” — Paul Ebeling

The Fed has said many times that they are data dependent. So, if the data requires them to raise 3X they might do it. But if the data changes, then maybe they will not.

Fed Chairman Powell told the Senate Banking Committee this wk, “If we see inflation persisting at high levels, longer than expected, if we have to raise interest rates more over time, then we will.

Heads up for economists analysts, and strategists, approach these expectations with humility. A lot of things can change, and change fast.

Have a prosperous day, Keep the Faith!

Previous articleGrowth Stocks Faded, Q-3 Earnings Kicks off Friday, Mr. Biden’s Struggles Hardens President Trump’s Support
Next articleIn the Metaverse People Will Find Their Best ‘Virtual Lives’
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.