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Don't say you weren't warned!
The Fed may not be able to avoid a recession – and may not be able to bring inflation down to its 2% target either, according to BlackRock.
"The Fed will be surprised by the growth damage caused by its tightening," analysts said in a note on Tuesday.
The bank's analysts think a recession could come in early 2023, likely before inflation is down to 2%.
Markets are expecting the Fed to stick to aggressive rate hikes after Chairman Jerome Powell's speech at Jackson Hole last month.
But higher rates won't solve the biggest problem, namely low production capacity, analysts said, meaning low supply relative to demand. Without addressing supply, the Fed would have to lower demand by 2% via rate hikes to get inflation down quickly.
"The Fed will be surprised by the growth damage caused by its tightening, in our view," analysts said in a note on Tuesday. "When the Fed sees this pain, we think it will stop raising rates. It will be too late to avoid a contraction in economic activity by then, we think, but the decrease won't be deep enough to bring PCE inflation down to the Fed's target of 2%. Instead, we expect inflation to persist close to 3%."
https://markets.businessinsider.com...lation-target-economy-growth-blackrock-2022-9
.
Don't say you weren't warned!
The Fed may not be able to avoid a recession – and may not be able to bring inflation down to its 2% target either, according to BlackRock.
"The Fed will be surprised by the growth damage caused by its tightening," analysts said in a note on Tuesday.
The bank's analysts think a recession could come in early 2023, likely before inflation is down to 2%.
Markets are expecting the Fed to stick to aggressive rate hikes after Chairman Jerome Powell's speech at Jackson Hole last month.
But higher rates won't solve the biggest problem, namely low production capacity, analysts said, meaning low supply relative to demand. Without addressing supply, the Fed would have to lower demand by 2% via rate hikes to get inflation down quickly.
"The Fed will be surprised by the growth damage caused by its tightening, in our view," analysts said in a note on Tuesday. "When the Fed sees this pain, we think it will stop raising rates. It will be too late to avoid a contraction in economic activity by then, we think, but the decrease won't be deep enough to bring PCE inflation down to the Fed's target of 2%. Instead, we expect inflation to persist close to 3%."
https://markets.businessinsider.com...lation-target-economy-growth-blackrock-2022-9
Republicans never controlled the House during Reagan's 8 years. Republicans controlled the House and Senate during Trump's first two years. He didn't try to cut spending at all really. On one hand I get it, you don't elected taking things away from people. But at the same time he spent just as much, if not more, than any career politician. So to me, complaining about spending and saying we need Trump back to deal with it are contradictory statements.
Trump added 8.2 Trillion dollars to the national debt.
Fuck you. Trump is over and you have been given many legitimate reasons for Brandon's ineptness pushing us into a recession.
Clinton PROVED what lowers deficits
Not one fucking Republican voted for the 1993 budget reduction act that actually worked
Then they spent YEARS lying and saying it didnt work
Then tried to claim the results
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Don't say you weren't warned!
The Fed may not be able to avoid a recession – and may not be able to bring inflation down to its 2% target either, according to BlackRock.
"The Fed will be surprised by the growth damage caused by its tightening," analysts said in a note on Tuesday.
The bank's analysts think a recession could come in early 2023, likely before inflation is down to 2%.
Markets are expecting the Fed to stick to aggressive rate hikes after Chairman Jerome Powell's speech at Jackson Hole last month.
But higher rates won't solve the biggest problem, namely low production capacity, analysts said, meaning low supply relative to demand. Without addressing supply, the Fed would have to lower demand by 2% via rate hikes to get inflation down quickly.
"The Fed will be surprised by the growth damage caused by its tightening, in our view," analysts said in a note on Tuesday. "When the Fed sees this pain, we think it will stop raising rates. It will be too late to avoid a contraction in economic activity by then, we think, but the decrease won't be deep enough to bring PCE inflation down to the Fed's target of 2%. Instead, we expect inflation to persist close to 3%."
https://markets.businessinsider.com...lation-target-economy-growth-blackrock-2022-9
Clinton PROVED what lowers deficits
Not one fucking Republican voted for the 1993 budget reduction act that actually worked
Then they spent YEARS lying and saying it didnt work
Then tried to claim the results
Why do you continue to insist on being retarded? Inflation as you know it is bullshit and you are an idiot.
Ummm...Powell just said like last month that the Fed was going to cause a recession because workers have too much leverage in the job market.
This mindset that government spending is somehow inherently bad or wasteful is precisely the reason why so many of those programs have operational failures today.
So you scream that there should be a cut in government spending, then those cuts harm a program's effectiveness, which you then use as an excuse to defund the program further or eliminate it entirely.
That is fiscal terrorism.
You obviously oppose government programs, but your position isn't shared by a majority on anything, so you can't legislate the programs away because they're too popular...so instead of accepting that, you try to make the programs less popular through cuts.
and you think I should go and demand a raise from my boss ROFL
again, tell me you know shit about economics without telling me you know shit about economics
real quick lesson on government spending and why it fucks us
pandemic stimulus, BILLIONS went to big business for spending and keeping employees, you got 1200 dollars.
of those BILLIONS sent to big business, how much stayed in shareholders pockets and capital spending accounts?
The US is running out of oil right now. Thanks, Obama! (this is really Obama's 3rd and illegal term)
newsflash, moron, we're in a recession. redefining a word doesn't change real life issues.Uhhh, yeah you should before they trigger a recession and you lose all leverage you currently have.
Ok...
I mean, we were calling for monthly checks, it was the moderates and centrists who cut that back.
So don't look to me about this stuff, it's not what we were calling for and we weren't in charge, Trump and the GOP were.
We tried to argue that people should be getting monthly checks for the duration of the pandemic, but you opposed that very publicly here.
So you are complaining about a problem that you caused and/or that you are standing in the way of solving.
These were questions the Democrats were asking.