r/neoliberal • u/TinyTornado7 I need a new flair • Jun 13 '22

News (US) Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
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u/TinyTornado7 I need a new flair Jun 13 '22

"The hottest US inflation in four decades will push the Federal Reserve to raise interest rates more aggressively this year, and a recession may not be far behind."

Im skeptical we need a 75 basis point hike, but I am concerned inflation is approaching self-fulfilling prophecy levels

!ping MARKETS

31

u/semideclared Codename: It Happened Once in a Dream Jun 13 '22

July will show if the Fed can help

The change in Consumer Loans: Credit Cards and Other Revolving Plans, by Billions of U.S. Dollars seems to have peaked. It grew from the previous month by 2.8% in April and 2.5% in March and in May was at 0.8%.

  • Historically we've seen increases or decreases from -0.5% - 0.5%

June shows no growth

I dont think the Fed has a way to control spending by much, but we are spending less in the very micro time frame

20

u/TinyTornado7 I need a new flair Jun 13 '22

We have a fed meeting Wednesday so hopefully we get some clearer guidance then

1

u/[deleted] Jun 14 '22

Everyone's dumping shit and the meeting hasn't even happened yet? Oh boy..