U.S. Federal Reserve Chairman Jay Powell warned U.S. interest rates would peak at a higher level than expected after hiking its main interest rate by 0.75 percentage points in an increasingly desperate attempt to quell rampant U.S. inflation running at 40-year highs.
Colby Smith for Financial Times:
Speaking after the central bank increased its main interest rate by 0.75 percentage points for the fourth time in a row, Powell warned the Fed had “some ways to go” in its quest to tame soaring prices and pointed to a string of economic reports suggesting it has yet to make a dent in inflation.
“Data since our last meeting suggests that the ultimate level of interest rates will be higher than expected,” the Fed chair added.
However, Powell also hinted that policymakers are willing to entertain the possibility of adopting a less aggressive increase at the Fed’s next meeting in December. “That time is coming, and it may come as soon as the next meeting, or the one after that… We do need to see inflation coming down decisively and good evidence of that would be a series of down monthly readings.”
Powell was speaking after the Federal Open Market Committee voted unanimously to increase the federal funds rate to a target range of 3.75 per cent to 4 per cent.
The central bank said “ongoing increases” in the fed funds rate would be necessary to have a “sufficiently restrictive” effect on the economy and bring inflation back to the Fed’s longstanding 2 per cent target.
The decision to press ahead with another 0.75 percentage point rate rise comes against a backdrop of mounting evidence that the most acute inflation problem in decades is not abating.
MacDailyNews Take: Again, when certain quarters, including the Fed, delude themselves and others that “inflation is transitory” and waste at least a year before doing a mere portion of what is necessary* (interest rate hikes), the price will be paid for being delusional and late.
Catching up will be difficult. But, hey, good luck on that soft landing. 🙄 – MacDailyNews, September 13, 2022
In January, Interactive Brokers founder Thomas Peterffy said of the U.S. Federal Reserve, “If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”
Peterffy may have been too conservative. Rates in excess of 6% may be required at this point. – MacDailyNews, October 13, 2022
‘Tis best to get a handle on inflation, if you know how, while you still can. – MacDailyNews, May 11, 2021
*Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult. – MacDailyNews, May 11, 2022
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Just 126 hours until we implement step one of the process to MAGA. Step two comes in 2024. 😀
Yep. Should be KAG, but we need to get out of this pit. #letsgobrandon
Fed and evil illegitimate biden regime are terrorists. These idiots think you ‘fix inflation’ by destroying demand and destroying the economy.
Sure, a few .25% rates (no more than one per quarter) hikes would be ok, but you do not cut fuel supply and you issue bonds instead of printing money like drunken sailors. You increase fuel supply including, hell yes, increasing fracking and federal land leases.
These idiots are economic terrorists and should all be tried for treason against this country. They are outright destroying the economy as their ‘final solution for inflation’. Idiots.
MAGA is full of #2!
Reminder: You are dumber than a pile of shit.
Maybe so, but smarter than you.
You are proof that stupid people are too stupid to know they are fucking stupid.
Even by libturd standards, you are an incredibly stupidmother fucker.
Vote down all you want, libturds, it won’t make you any less stupid.
FYI: It does not make you right, when other stupid motherfuckers agree with you. It just proves your stupidity.
You are proof that stupid people are too stupid to know they are fucking stupid.
Even by libturd standards, you are an incredibly stupidmother fucker.
Vote down all you want, libturds, it won’t make you any less stupid.
FYI: It does not make you right, when other stupid motherfuckers agree with you. It just proves that other stupid people agree with you. That’s not a good thing.
No, I’m smarter than you because a pile of shit agrees with me.
The dumber the libturd, the smarter they think they are. Funny how that works.
So someone who needs to use the f word twice and the amplified f word once in a six sentence post is supposed to be seen as intelligent? What am I missing?
The only thing you are missing is a brain.
Biden is going to blame Putin for the inflation .
What other world event has had more impact on the global oil price? Tell us.
Interesting fact:
Let’s compare 2018 pre-pandemic US domestic oil production to 2021 oil production (last full year of available data at EIA.gov).
2018: average 10,953,000 barrels per day (pre-pandemic)
2020: average 11,318,000 barrels per day
2021: average 11,254,000 barrels per day
SHOCKING NEWS! from 2021 to 2022, US production declined by a massive 0.566%. Oh my goodness, the sky is falling!
So you can make a mountain out of a blip, but in the big picture US petroleum exports are higher in 2022 than they ever have been in history by a significant margin: https://www.eia.gov/petroleum/weekly/archive/2022/220914/includes/analysis_print.php If you want to know why US oil companies would rather ship it out than keep your pump price a small fraction of what all other industrialised companies pay for petrol, you would have to ask them or take Econ 101.
The data is available. Stop falling for the blatant lie claiming that the current administration has halted or in any meaningful way hampered the capacity of the USA to produce oil. Also, don’t flip the subject to federal land lease reviews that wouldn’t have any production for a decade or more if oil drilling companies did actually want to renew the leases … which many did not. Drill baby drill isn’t a long term answer, and frankly, it’s exactly what the current administration has already done. Unfortunately Biden can’t control the highest bidder to whom Exxon sells its oil. If he did, you’d be screaming about market interference. (Of course magats never complain about market interference when Exxon gets government grants or legal exemptions).
Great points Steve. It is refreshing to read facts rather than the hyperbole I see here. Thank you.
I’m not following. Putin sanctioned Russia in support of Nazis gearing up to slaughter Russian-speaking Slavs?
Here’s some data for you…
From January to July 2022, the price of regular motor gasoline rose 49% and the price of diesel fuel rose slightly more at 55%.
It was no secret on the campaign trail that Joe Biden wanted to end America’s use of conventional energy such as coal, oil, and natural gas. Biden’s first executive orders in office deployed a sweeping regulatory agenda throughout the executive branch to that end. This radical agenda has been the consistent message and persistent policy choice of the administration.
Biden’s anti-Fossil Fuel Energy Policy costs Americans dearly.
Context……
https://www.wsj.com/articles/frackers-say-oil-production-slowing-in-the-shale-patch-11667743226
Oil executives are busy lining their pockets rather than delivering you cheap fuel. You’re hooked, they know they literally have you over a barrel. So you blame the POTUS ?????????? You have been brainwashed by social media into extremely shallow thinking. Something this site has pivoted to as well….
There is more than one person who determines what happens to you, and it’s not one of the old fogeys in DC from either corrupt party. Gain perspective with full data instead of playing juvenile blame games.
Putin is the ever-present bogeyman that has been blamed for all of American’s real or perceived problems since 2016. It’s too easy of a scapegoat to pass up for politicians.
Oh Steve 88 (it should be 666); how clever you are at twisting headlines and CNN propaganda into what seems plausible. The oil companies, (of course!) didn’t drill on unprofitable areas including the federally leased areas while prices were wonderfully low. Only you would do that. Their job is to make profits and distribute them the the shareholders. But then, you knew that.
An further, you’re trying to foist the notion on us that we either wouldn’t be as well-off as we are today, or we might be in the same mess today if Joke Bribe’m hadn’t killed the Keystone pipeline project which would be fully functional right now.
Take a walk Steve; your too clever at creative writing and too committed to your Communist pals to present an impartial view of things…and we here know it.
Keystone XL was never scheduled to be in operation by 2022.
The API’s optimistic projection for the Keystone XL was that it could be online (not “fully functional”) by 2023 … but this prediction was dependent not just on Trump winning 2020 but also if CoVid never happened.
And since that tar sand was largely for export (and its too heavy to refine to gasoline), the XL would not have any any impact on US retail gasoline prices.
XL also wouldn’t have had much impact on jobs in the US either, as the few US refineries which can distill heavy crude currently import from Mexico, so it would have simply been a change in supplier, not “new business”, as its not really a growth industry, as illustrated by the fact that only 7.7% of US refineries are less than 30 years old.
How about reading what I wrote, including links to the EIA, rather than twisting it to suit your partisan needs? I have never mentioned CNN, I don’t watch it, and never have. YOU trotted that out that canard in a blatant attempt to label me. The rest of your attempted insults & non sequitur isn’t worth discussion at all.
Oil companies are always drilling, always analyzing, always exploring. They don’t turn the spigot on and off based on US administration. It is based on GLOBAL demand. The market price is NOT controlled by the US executive branch, and in fact the Biden administration is doing you a huge favor dropping the federal SPR so that US refineries are fed with all the crude they can get their hands on. It’s also smart hedging to buy low, sell high … exactly what is being done with the SPR. However, it’s clear there are no facts that will convince you of anything but malice on the part of the current administration.
Nice job pivoting to Canada to keep the word association games going. Since you’re so interested in the financial benefits for TransCanada, let’s review. Keystone XL would have pushed thick Canadian tar to US export terminals and employed less than 800 long term US employees. That is, it would have, but TransCanada was unable to convince about 10% of US property owners along its preferred route to sell. TC was bogged down in court for years trying to use eminent domain wrangling to force US land owners to give them access. Are you siding with a Canadian corporation or US citizens on this?
It’s a moot point since Keystone XL was greenlit by the US State Dept in 2017 [https://2017-2021.state.gov/wp-content/uploads/2019/02/Record-of-Decision-and-National-Interest-Determination.pdf], but with the US farmers opposing the trashing of their farmland, TC decided it wasn’t worth the costs. Environmentalists didn’t stop the pipeline, they only delayed it. Economics killed it. Food production in the US, as determined by farmers themselves, is worth more than the piddly US economic benefits that TC claims it would have created. Facts matter.
I suppose you can now call US farmers communists too. That’s your go-to argument whenever you’re too lazy to stick to the discussion or bring facts to the table. Do you even know what that is?
If you fight against an industry, tell them you are putting them out of business, exactly how would you be able to supply more product, at a lower cost? How would you build a budget, and forecast to keep paying your employees? Biden told them what he would do, and he went further than we expected, and every action has led to increased cost, hence, increased prices. Biden needs to go!
Support oil, they keep America warm and moving.
Oil must be strategically fu*ked. The most corrupt industry after the weapons industry with which they are allied. We should bill them for the wars we fought for them, get reparations for our dead, and since they won’t be able to afford it… Nationalize them!
Spoken like a true communist. How stupid are you????
What do you call fighting wars for corporate interest? Capitalism doesn’t mean corporate welfare.
Besides Joe, Obama threatened headwinds to energy producers. Add to that, oil co’s were and are being influenced by the ESG idiocy. After the shale boom 5+ yrs ago, oil price dropped and many, many oil rigs were shut down. The count is still down, but rebounding.
To note our production has declined by less than a %, may sound good nominally, but the World’s energy needs are greater, Russia has thrown a twist, but the Saudis haven’t just decided to not increase production, they can’t…their supply is making the call.
So, yes the impact of Biden’s embrace of the green idiocy (ie. “we’ve been given an opp to transition”), like Europe, deter…while various sources are being purposely limited (US & Canada) and S Arabia’ spare capacity is shrinking.