{"id":1859816,"date":"2023-02-25T09:50:50","date_gmt":"2023-02-25T14:50:50","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1859816"},"modified":"2023-02-25T09:53:36","modified_gmt":"2023-02-25T14:53:36","slug":"fed-prepares-for-longer-than-expected-inflation-fight","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-prepares-for-longer-than-expected-inflation-fight\/","title":{"rendered":"Fed Prepares for Longer-Than-Expected Inflation Fight"},"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\">12<\/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%2Ffed-prepares-for-longer-than-expected-inflation-fight%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=1859816&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-->\n<p>Two Federal Reserve officials suggested Friday that inflation could last longer than expected after the central bank&#8217;s most closely monitored inflation gauge. <a data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/inflation-gauge-tracked-fed-accelerated-133638708.html\" data-ylk=\"slk:surged by the most in months;cpos:1;pos:1;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">The most significant increase in the last few months<\/a>.<\/p>\n<p>Loretta Mester, Cleveland Fed President, and Philip Jefferson, Fed Governor, said that they are still concerned about an inflation rate well above the Fed\u2019s 2% target year-over-year.<\/p>\n<p>Mester stated that although inflation has slowed, it is still too high. She cited recent research by the Cleveland Fed and a paper discussing inflation that suggested it could be persistant than initially anticipated.<\/p>\n<p>&#8220;I see the risks to the inflation forecast as tilted to the upside and the costs of continued high inflation as being significant,&#8221; Mester spoke at the U.S. Monetary Policy Forum, New York. &#8220;So in my view, at this point, with the labor market still strong, the costs of undershooting on policy or prematurely loosening policy still outweigh the costs of overshooting.&#8221;<\/p>\n<p>The comments came as the Fed&#8217;s preferred measure of inflation \u2013 the personal consumption expenditures (PCE) index \u2013 <a data-i13n=\"cpos:2;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/inflation-gauge-tracked-fed-accelerated-133638708.html\" data-ylk=\"slk:unexpectedly accelerated in January;cpos:2;pos:1;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">January unexpectedly accelerated<\/a>Annually, it rose 5.4% in the last month. The inflation gauge rose 4.7% in April, excluding volatile food and energy prices. Both are significant pickups after months of declines.<\/p>\n<p>The PCE index grew 0.6% in January, compared to December. Core prices rose 0.6% in January compared to December&#8217;s 0.4%. Friday&#8217;s numbers came one week after the release of the Consumer Price Index by the government. <a data-i13n=\"cpos:3;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/january-consumer-prices-inflation-data-cpi-february-14-123544672.html\" data-ylk=\"slk:showed a similar pickup in the inflation rate;cpos:3;pos:1;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">Similar increases were seen in the inflation rate<\/a>.<\/p>\n<figure class=\"caas-figure\">\n<div>\n<div>\n<div class=\"caas-img-container caas-img-loader noheight\"><img class=\"caas-img caas-lazy has-preview\" alt=\"Loretta J. Mester, president and CEO of the Federal Reserve Bank of Cleveland, looks on at Teton National Park where financial leaders from around the world gathered for the Jackson Hole Economic Symposium outside Jackson, Wyoming, U.S., August 26, 2022. REUTERS\/Jim Urquhart\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/02\/e5efc110-2580-11ed-9f7f-b8a6a666d6c6\" src   style=\"display:none\"><noscript><img decoding=\"async\" alt=\"Loretta J. Mester, president and CEO of the Federal Reserve Bank of Cleveland, looks on at Teton National Park where financial leaders from around the world gathered for the Jackson Hole Economic Symposium outside Jackson, Wyoming, U.S., August 26, 2022. REUTERS\/Jim Urquhart\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/02\/e5efc110-2580-11ed-9f7f-b8a6a666d6c6\" class=\"caas-img\" \/><\/noscript><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">Loretta J. Mester, President and CEO of Federal Reserve Bank of Cleveland, watches Teton National Park, where financial leaders from all over the globe gathered to attend the Jackson Hole Economic Symposium, Wyoming, U.S.A, August 26, 2022. REUTERS\/Jim Urquhart<\/figcaption><\/p>\n<\/figure>\n<p>Markets were abuzz with inflation fears and renewed rate hike worries. The Dow Jones Industrial average was the hot read. <a data-i13n=\"cpos:4;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/stock-market-news-today-february-24-2023-104349492.html\" data-ylk=\"slk:tanking 336 points;cpos:4;pos:1;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">336 points tanking<\/a>.<\/p>\n<p>&#8220;By betting on a terminal rate above 5.35%, the market is effectively betting that the recent momentum in both growth and inflation will be sustained through the summer,&#8221; Aneta Markowska is the chief economist of Jefferies.<\/p>\n<p>Mester, who is not eligible to vote in monetary policy decisions for this year, said in an interview with Bloomberg Friday morning that the Fed&#8217;s latest inflation readings show the Fed must keep raising interest rates. However, Mester did not suggest the Fed should increase the rate by 50 basis points at its next policy meeting in March. Mester stated last week that she <a data-i13n=\"cpos:5;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/feds-mester-saw-compelling-case-for-050-rate-hike-this-month-135749680.html\" data-ylk=\"slk:wanted to raise the benchmark policy rate by 50 basis points;cpos:5;pos:1;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">We wanted to raise the benchmark rate of policy by 50 basis points<\/a> At the last policy meeting, she tried to speed up the peak rate, but she didn&#8217;t want surprise the markets.<\/p>\n<p>Friday morning interview with CNBC: Mester also indicated that her December prediction to raise rates by a little more than 5% has not changed.<\/p>\n<p>Susan Collins, Boston Fed President, said Friday that inflation remains too high and that more work needs to be done.<\/p>\n<p>&#8220;Inflation remains too high, and recent data \u2026all reinforce my view that we have more work to do, to bring inflation down to the 2 percent target,&#8221; Collins. &#8220;I anticipate further rate increases to reach a sufficiently restrictive level, then holding there for some, perhaps extended, time.&#8221;<\/p>\n<p>Jefferson spoke at the conference as well and suggested that there may be a slowing inflation due to a lack of workers for certain jobs.<\/p>\n<p>&#8220;The ongoing imbalance between the supply and demand for labor, combined with the large share of labor costs in the services sector, suggests that high inflation may come down only slowly,&#8221; He said.<\/p>\n<p>Jefferson said that the factors driving inflation today are different than past episodes. Therefore, economic models won\u2019t be as useful for policymakers. Jefferson stated that the current situation is unique because of the global pandemic, which caused unprecedented disruptions in global supply chains. This has a long-lasting effect on the labor participation rate.<\/p>\n<p>&#8220;The inflationary forces impinging on the U.S. economy at present represent a complex mixture of temporary and more long-lasting elements that defy simple, parsimonious explanation,&#8221; He said.<\/p>\n<p>Jefferson stated that he believes the Fed is responding to the inflation spike proactively. This is unlike the 1970s, and is therefore more credible now.<\/p>\n<p>Here&#8217;s how a bond king looks like <a data-i13n=\"cpos:6;pos:1\" href=\"https:\/\/news.yahoo.com\/jeffrey-gundlach-here-comes-the-hard-economic-landing-200336646.html\" data-ylk=\"slk:Jeffrey Gundlach;cpos:6;pos:1;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">Jeffrey Gundlach<\/a> Yahoo Finance Live exclusively spoke to about inflation, recessions and black Swans<\/p>\n<p><a data-i13n=\"cpos:7;pos:1\" href=\"https:\/\/finance.yahoo.com\/topic\/economic-news\" data-ylk=\"slk:Click here for the latest economic news and economic indicators to help you in your investing decisions;cpos:7;pos:1\" class=\"link\"><strong>Click here to get the most recent economic news and indicators that will help you make informed investing decisions<\/strong><\/a><\/p>\n<p><a data-i13n=\"cpos:8;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/\" data-ylk=\"slk:Read the latest financial and business news from Yahoo Finance;cpos:8;pos:1\" class=\"link\"><strong>Yahoo Finance brings you the most recent financial and business news<\/strong><\/a><\/p>\n<p><em>Get the Yahoo Finance app <\/em><a data-i13n=\"cpos:9;pos:1\" href=\"https:\/\/itunes.apple.com\/ca\/app\/yahoo-finance\/id328412701?mt=8\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Apple;cpos:9;pos:1\" class=\"link\"><em>Apple<\/em><\/a><em> Oder <\/em><a data-i13n=\"cpos:10;pos:1\" href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.yahoo.mobile.client.android.finance&#038;hl=en\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Android;cpos:10;pos:1\" class=\"link\"><em>Android<\/em><\/a><\/p>\n<p><em>Follow Yahoo Finance <\/em><a data-i13n=\"cpos:11;pos:1\" href=\"https:\/\/twitter.com\/YahooFinance\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Twitter;cpos:11;pos:1\" class=\"link\"><em>Twitter<\/em><\/a><em>, <\/em><a data-i13n=\"cpos:12;pos:1\" href=\"https:\/\/www.facebook.com\/yahoofinance\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Facebook;cpos:12;pos:1\" class=\"link\"><em>Facebook<\/em><\/a><em>, <\/em><a data-i13n=\"cpos:13;pos:1\" href=\"https:\/\/www.instagram.com\/yahoofinance\/?hl=en\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Instagram;cpos:13;pos:1\" class=\"link\"><em>Instagram<\/em><\/a><em>, <\/em><a data-i13n=\"cpos:14;pos:1\" href=\"https:\/\/flipboard.com\/@YahooFinance\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Flipboard;cpos:14;pos:1\" class=\"link\"><em>Flipboard<\/em><\/a><em>, <\/em><a data-i13n=\"cpos:15;pos:1\" href=\"https:\/\/www.linkedin.com\/company\/yahoo-finance\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:LinkedIn;cpos:15;pos:1\" class=\"link\"><em>LinkedIn<\/em><\/a><em>?, and<\/em><a data-i13n=\"cpos:16;pos:1\" href=\"http:\/\/youtube.com\/c\/yahoofinance?sub_confirmation=1\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:YouTube;cpos:16;pos:1\" class=\"link\"><em> YouTube<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two Federal Reserve officials suggested Friday that inflation could last longer than expected after the central bank&#8217;s most closely monitored inflation gauge. The most significant increase in the last few months. Loretta Mester, Cleveland Fed President, and Philip Jefferson, Fed Governor, said that they are still concerned about an inflation rate well above the Fed\u2019s &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1859819,"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":[547],"tags":[7498,4004,5708,19692,5678],"class_list":["post-1859816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-fed","tag-fight","tag-inflation","tag-longer-than-expected","tag-prepares"],"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\/1859816","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=1859816"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1859816\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1859819"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1859816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1859816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1859816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}