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  • How Long Will It Take Inflation to Hit the Fed’s 2% Target?

    From awealthofcommonsense.com

    Inflation is finally slowing down. We’ve gone from an annual run rate of more than 9% to around 7%. This is not yet mission accomplished but the fact that we’ve gotten a handful of inflation prints going in the right direction is a good start. Even though the past 3 months of inflation have come in at an annualized rate of 3.7%, the Fed is not impressed. Jerome Powell and team want to get it to a more reasonable level. They say that’s 2%. Where does their 2% inflation target come from? You would have to ask them. When asked this week if they would consider changing that target, Powell emphatically said nope, ... (full story)

5 years or 2 years and then 10 years.
Never. You're welcome.
Everyone can see the chart, but only a few can actually read it.
How long is it going to take the FED to reduce the money supply to pre-covid levels? This one of the biggest causes of the inflation left over from Covid19 that the FED is ignoring.
  •  Guest
  • | IP X.XXX.32.164
even if inflation gets to 2 % ... what about the price hikes of things like the $40 I am paying for an item that used to cost only $10 before the virus ??? prices will never drop to pre-covid levels ... Econ 101 ... products are priced at what the market will bear ...
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  • | IP XXX.XXX.185.231
As the Fed continues to raise rates, eventually everything will come to a halt, Buying/demand will slow, housing will stop, all sales will slow/stop, unemployment will rise, stock market will crash, people will hold onto every last dollar. I have seen this 5 times over the last 50 years. And for every idiot that thinks the Fed will pivot you are wrong. It happened in the 70's and 80's with Volker. The Fed came back into the market and continued to raise rates. Inflation will be brought under control as the US dollar is the worlds currency, everything is valued in dollars. You will not be taking a wheel barrel of money to buy goods/services. And every fool that keeps buying stocks the crash happens quickly and comes from left field. There is a war, World energy crisis, and a large growing US deficit which must be supported and paid. The supply side will not be corrected by rising interest rates. China reopens and covid comes alive to the worlds manufacturer.
Quoting Guest
As the Fed continues to raise rates, eventually everything will come to a halt, Buying/demand will slow, housing will stop, all sales will slow/stop, unemployment will rise, stock market will crash, people will hold onto every last dollar. I have seen this 5 times over the last 50 years. And for every idiot that thinks the Fed will pivot you are wrong. It happened in the 70's and 80's with Volker. The Fed came back into the market and continued to raise rates. Inflation will be brought under control as the US dollar is the worlds currency, everything...
WOW - that's all I thought about reading your post. It seems so bleak and somber compared to the dancing idiots on CNBC

While I agree with you 90% (up to the last 3 sentences) there are so many people who I keep hearing say, "Well this time is different..." Yeah right...

The ONLY way to combat inflation is to kill the demand or increase the supply.

The 4 largest areas of concern with inflation:

1. Goods/Food coming back to Earth but the war doesn't help
2. Services Problem child - still too high
3. Energy This could be solved by letting the USA produce oil but Biden will not allow so kill demand
4. Housing THIS IS THE ELEPHANT IN THE ROOM

There is a housing shortage in the USA NOW! Demand outstrips supply hence the HUGE price increases of the past 2 years. Rising interest rates kills the purchasing demand but the DEMAND is still there and GROWING. Builders aren't going to invest in loans for new housing when purchase demand is low. The ONLY housing projects to go forward will be multi-family/apartments when/if they can get approved for building.

The FED has their hands tied, especially since NO ONE EVER MENTIONS QT (Quantative Tightening) People don't realize that the FED is selling millions every month on the open market further surpressing prices.

When people look at inflation the oversimplify it. If anyone thinks that the FED is going to cut rates in 2023 is wrong.
...because you never know - until you do!
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