Fun

St. Louis Fed President Says Central Bank’s ‘Credibility Is On the Line’ as US Inflation Surges

News Feed - 2022-02-16 08:02:15

St. Louis Fed President Says Central Bank"s "Credibility Is On the Line" as US Inflation Surges


Inflation continues to grip American wallets, according to a recent economic analysis from Moody’s Analytics, which shows inflation is likely costing the average U.S. household between $250 to $276 per month. Meanwhile, the U.S. Federal Reserve is expected to raise the benchmark interest rate in March and St. Louis Fed president James Bullard believes the Fed needs to “front-load” rate hikes. St. Louis Fed President on Inflation: ‘People Are Unhappy, Consumer Confidence Is Declining’


Last week, the U.S. Labor Department published its Consumer Price Index (CPI) report which noted inflation jumped 7.5% higher than it was a year ago. Following the report, Moody’s Analytics notes that the average U.S. household is likely paying $250 to $276 a month due to the added inflation. As the days continue in 2022, the U.S. dollar’s purchasing power has decreased and the price of goods and services has increased.


Moody’s senior economist Ryan Sweet explained that a lot of Americans are feeling the burden of inflationary pressures. “A lot of people are hurting because of high inflation,” Sweet said. “$250 a month—that’s a big burden. It really hammers home the point of ‘what is the cost of inflation?’”


The chief executive officer and 12th president of the Federal Reserve Bank of St. Louis, James Bullard, made similar remarks on Monday. “The inflation that we’re seeing is very bad for low- and moderate-income households,” Bullard told CNBC. “People are unhappy, consumer confidence is declining. This is not a good situation. We have to reassure people that we’re going to defend our inflation target and we’re going to get back to 2%.”


Bullard also spoke about the Labor Department’s January CPI report published last week. “My interpretation was not so much that report alone, but the last four reports taken in tandem have indicated that inflation is broadening and possibly accelerating in the U.S. economy,” Bullard stressed. During the CNBC “Squawk Box” interview, the president of the Federal Reserve Bank of St. Louis added: I do think we need to front-load more of our planned removal of accommodation than we would have previously. We’ve been surprised by the upside on inflation. This is a lot of inflation. Our credibility is on the line here and we do have to react to the data. However, I do think we can do it in a way that’s organized and not disruptive to markets.


San Francisco Fed President: ‘Fed’s Abrupt and Aggressive Action Can Actually Have a Destabilizing Effect’


Equities markets have felt the sting of a souring U.S. economy as Nasdaq, NYSE, and the Dow Jones Industrial Average all closed in red territories on Monday. Data shows bond markets have also signaled that investors are concerned about the Fed’s decision. “It is very true that inflation is too high and is really hitting the pocketbooks of average Americans across a wide range of categories,” the president of the Federal Reserve Bank of San Francisco, Mary C. Daly (pictured above), said on Sunday. “The Federal Reserve is actively focused on this.”


The president of the Federal Reserve Bank of San Francisco, Mary C. Daly, spoke about the Fed acting on inflation as well, but stressed to CBS’s “Face the Nation” that it needed to be a “measured [approach].”


“I see that it is obvious that we need to pull some of the accommodation out of the economy,” Daly explained. “But history tells us with Fed policy that abrupt and aggressive action can actually have a destabilizing effect on the very growth and price stability we’re trying to achieve.” Tags in this story Bond Markets, Consumer Inflation, CPI, CPI report, disruptive to markets, dow jones, economics, Economics Report, Economy, Equities markets, James Bullard, Labor Department, Mary C. Daly, Moody’s Analytics, Moody’s senior economist, nasdaq, NYSE, Purchasing Power, report, Ryan Sweet, San Francisco, st Louis, St. Louis Federal Reserve president, US economy, US Inflation


What do you think about Moody’s data on inflation? What do you think about the comments stemming from the two Fed presidents Bullard and Daly? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today. US Inflation Jumps to 7.5%, CPI Climbs at Fastest Rate in 40 Years, Citizens See Little Wage Growth ECONOMICS | 5 days ago Report: Lebanon Planning to Devalue Currency by 93%, Depositors to Lose $38 Billion ECONOMICS | 6 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleInto the Gaming Metaverse: Cardania Launches on KICK․IO Starting February 15 Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItPUBG Developer Parent Company Krafton to Work On NFT and Metaverse Related Projects


Krafton, the parent company of Bluehole, developers of PUBG, a popular battle royale game that has earned more than $300 million in 2021, announced it will redirect some of its activities toward developing NFT and metaverse-related projects. The company says ... read more.Topps Plans to Auction Rare 1952 Mickey Mantle NFT Card Minted on Ethereum Fintech Specialists Predict Ethereum Price Hitting $6,500 This Year Before Rising to $26,338 by 2030 JPMorgan Predicts Long-Term Bitcoin Price of $150K — Outlines Challenges Ahead US Inflation Jumps to 7.5%, CPI Climbs at Fastest Rate in 40 Years, Citizens See Little Wage Growth

News Feed

Bitmain’s Cofounder Accused of Hindering Next-Gen Bitcoin Mining Rig Shipments
Bitmain"s Cofounder Accused of Hindering Next-Gen Bitcoin Mining Rig ShipmentsOn June 11, 2020, regional reports disclosed that the cofounder of Bitmain, Micree Zhan, is still battl
Abkhazia Shuts Down 2 Crypto Farms, Seizes Mining Hardware
Abkhazia Shuts Down 2 Crypto Farms, Seizes Mining Hardware Authorities in Abkhazia have closed down two crypto mining farms that have been illegally connected to
Estonia Considers Revoking Crypto Licenses as Government Mulls Tougher Regulations
Estonia Considers Revoking Crypto Licenses as Government Mulls Tougher Regulations Authorities in Estonia are working on new legislation expected to stiffenthe rules for thecountry
Judge grants SEC’s deadline extension on Ripple case
Ana Paula Pereira7 hours agoJudge grants SEC’s deadline extension on Ripple caseThe Securities and Exchange Commission has requested an extension to the deadline to file remedies-related discovery documents submitted b
Is The Bitcoin Top In? Bitcoin MVRV-Score Has The Answer
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin Weekly PPO Turns Red At $102,000, What It Means For The Bull Market
Este artículo también está disponible en español. Crypto analyst Tony Severinohas revealed that the Bitcoin Percentage Price Oscillator (PPO) has turned red after reachin
Tom Blackstone2 hours agoSam Altman ousted from OpenAI, CTO Mira Murati named interim CEOThe board of directors removed Altman on the grounds that he was allegedly “not consistently candid in his communications with th
Bitcoin price consolidation preps NEAR, APT, RNDR and MKR for more upside
Rakesh Upadhyay5 hours agoBitcoin price consolidation preps NEAR, APT, RNDR and MKR for more upsideBitcoin recovered the $68,000 level, triggering buying in NEAR, APT, RNDR and MKR.3147 Total views3 Total sharesListen to
Tom Mitchelhill2 hours agoSEC appeal could amplify Ripple win, says Ripple Labs legal chiefStuart Alderoty says that an appeal by the Securities and Exchange Commission could see Ripple consolidate its victory over the r
Brian Quarmby3 hours agoBitcoin Ordinals NFT trading volume tanks 98% since May — DappRadarAlongside the declining trading volumes, the number of Bitcoin Ordinals transactions dropped by 97% to just 20,571 in mid-Augus
Savannah Fortis12 hours agoSam Bankman-Fried’s jets are subject to forfeiture, says prosecutionThe U.S. Department of Justice says the two jets purchased by Bankman-Fried via FTX are now property subject to forfeiture
Jack Dorsey Introduces Bitcoin Legal Defense Fund to Protect Open Source Developers
Jack Dorsey Introduces Bitcoin Legal Defense Fund to Protect Open Source Developers A recent letter published to the Bitcoin developers mailing list written by Square founder Jack