{"id":1713803,"date":"2022-10-27T15:48:20","date_gmt":"2022-10-27T19:48:20","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1713803"},"modified":"2022-10-27T15:48:29","modified_gmt":"2022-10-27T19:48:29","slug":"major-financiers-warn-fed-may-spike-interest-rates","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/major-financiers-warn-fed-may-spike-interest-rates\/","title":{"rendered":"Major Financiers Warn Fed May Spike Interest Rates"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmajor-financiers-warn-fed-may-spike-interest-rates%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1713803&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Two of the major players in the financial industry warned that the U.S. is on the verge of a recession and that the Federal Reserve might well raise the interest rate from its current 3-3.25% all the way to 4.5-4.75%.<\/p>\n<p>David Solomon, CEO of Goldman Sachs, and Jamie Dimon, the chairman and chief executive of JPMorgan Chase, <a href=\"https:\/\/www.dailymail.co.uk\/news\/article-11359191\/Goldman-Sachs-JPMorgan-CEOs-predict-Fed-raise-rates-4-75-expect-recession.html\">spoke<\/a> on Tuesday at a conference in Saudi Arabia.<\/p>\n<p>\u201cIf they don\u2019t see real changes \u2014 labor is still very, very tight, they are obviously just playing with the demand side by tightening \u2014 but if they don\u2019t see real changes in behavior, my guess is they will go further,\u201d Solomon said of the Fed. \u201cAnd I think generally when you find yourself in an economic scenario like this where inflation is embedded, it is very hard to get out of it without a real economic slowdown. The U.S. is most likely going to have a recession.\u201d<\/p>\n<p>\u201cAmerican consumers, eventually the excess money they have is running out,\u201d Dimon predicted. \u201cThat will probably happen sometime mid-year next year, and then we will know more about what is going on with oil and gas prices and that kind of thing, so we will find out. \u2026 there is a lot of stuff on the horizon which is bad, and could \u2014 not necessarily, but could \u2014 put the United States in a recession.\u201d<\/p>\n<p>In early September Fed Chair Jerome Powell declared, \u201cWe\u2019ve got a\u00a0dual mandate\u2014maximum employment and price stability\u2014and it comes down to: Is nominal income [GDP] targeting the best way to promote that? We don\u2019t think it is; I\u00a0don\u2019t think it is.\u201d<\/p>\n<p>\u201cThe basic idea behind nominal income targeting is that the central bank would establish a target growth rate for nominal income in the economy (as measured by, for example, nominal GDP),\u201d Joshua Hendrickson of George Mason University stated. \u00a0\u00a0\u201cWhen nominal income is below its target, the central bank would engage in expansionary monetary policy by increasing the money supply.\u201d<\/p>\n<p>\u201cPowell is concerned that estimates of the trend growth of output are \u2018highly uncertain\u2019 and that a\u00a0decline in trend growth would require higher inflation,\u201d James A. Dorn of the Cato Institute <a href=\"https:\/\/www.cato.org\/blog\/case-nominal-gdp-targeting-reply-fed-chair-powell\">explained<\/a>. \u201cThus, under a\u00a0nominal gross domestic product (NGDP) target, he thinks there would be communication issues\u2019 as well as \u2018big chances of policy error because we just don\u2019t know any of the starred variables\u2019 (e.g., the equilibrium values of real output, employment, and interest rates).\u201d<\/p>\n<p>Clive Crook of Bloomberg opined, \u201cThe Fed can\u2019t control how much growth in NGDP is from higher real output and how much is from higher prices, the quantities it cares about. Using NGDP as an intermediate target to guide monetary policy recognizes this,\u201d Dorn noted.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two of the major players in the financial industry warned that the U.S. is on the verge of a recession and that the Federal Reserve might well raise the interest rate from its current 3-3.25% all the way to 4.5-4.75%. David Solomon, CEO of Goldman Sachs, and Jamie Dimon, the chairman and chief executive of &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1534106,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[],"class_list":["post-1713803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1713803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1713803"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1713803\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1534106"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1713803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1713803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1713803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}