Powell faces key question: What's wrong with low inflation?

Washington Times 2 months ago

WASHINGTON (AP) - When out shopping, most Americans like lower prices. But the Federal Reserve sees things a little differently.

Fed Chairman Jerome Powell instead says that low inflation, along with low interest rates, are “longer-term challenges” for the United States.

In a brief speech in Kansas City, Missouri, Powell also acknowledged that such a view might be confounding to many Americans: “You may be asking, ‘What’s wrong with low inflation and low interest rates?’” he said.

The question highlights a problem for the Fed: It is struggling to get inflation closer to its 2% target, but also has to explain to the public why it wants to push inflation higher.

The Fed targets 2% inflation as a cushion against deflation, a destabilizing fall in prices and wages that can cause a recession.


Source link
Read also:
ABC News › Finance › 2 months ago
Fed Chairman Powell faces tough question: What's wrong with low US inflation?
The New York Times › Finance › 2 weeks ago
Federal Reserve Chairman Jerome Powell is sketching an optimistic view of the economy but signaling that continued low inflation means higher interest rates won’t likely be necessary anytime soon.
New York Daily News › 2 weeks ago
Federal Reserve Chairman Jerome Powell is sketching an optimistic view of the economy but signaling that continued low inflation means higher interest rates
Chicago Tribune › Finance › 2 months ago
When out shopping, most Americans like lower prices. But the Federal Reserve sees things a little differently.
Washington Examiner › Finance › 3 weeks ago
Federal Reserve Chairman Jerome Powell said that the unemployment rate, already at a 50-year low, could drop further without necessarily causing inflation to rise.
The Wall Street Journal › Finance › 8 hours ago
The worry haunting Jerome Powell is that during and after the next downturn, the Fed will get stuck in the same trap of sinking inflation, near-zero interest rates and a limited ability to generate stronger growth that swamped Japan last decade and...
One America News Network › Finance › 1 day ago
(Reuters) - U.S. consumers' inflation expectations rose slightly in November, bringing the outlook for near and medium-term inflation up from a five-year low in a New York Federal Reserve survey,
The New York Times › Finance › 1 day ago
U.S. consumers' inflation expectations rose slightly in November, bringing the outlook for near and medium-term inflation up from a five-year low in a New York Federal Reserve survey, potentially offering relief to policymakers worried about sagging...
Reuters › Finance › 1 week ago
Turkey's annual consumer price inflation rose less than expected to 10.56% in November, increasing the chances of a sizeable rate cut by the central bank next week, even as inflation rebounded from a near three-year low.
Axios › Finance › 1 month ago
Fed Chair Jerome Powell almost rocked the boat during the FOMC's October press conference on Wednesday after announcing a third straight cut to U.S. interest rates.What happened: Powell initially said it would take a "material reassessment" in the...
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google
OR