Market Insight October 2022

October 6, 2022
Market Insight October 2022

EDIT Why The Federal Reserve Won’t Be So Quick To Ease Up On Its Fight Against Inflation—"Think of Federal Reserve Chairman Jerome Powell as a gymnast sprinting across the mat, spiraling, turning, churning, then twisting through the air and trying to make sure he still lands perfectly on his feet. That’s monetary policy in this era of rapid inflation, swooning economic growth and heightened fears over what could go wrong. Powell is that gymnast, standing on the economic version of an Olympic mat, and having to make sure everything goes right. Because if things go wrong, they could go very wrong.

"They have to stick the landing,” said Joseph Brusuelas, chief economist at RSM.. “It’s the lower end of the economic ladder that is going to bear the burden if the Fed doesn’t stick the landing correctly. They lose jobs and their spending goes down and they have to draw on savings and 401(k)s to make ends meet.” Consumers pressured by consistently rising prices already are dipping into savings to cover costs. The personal saving rate was just 3.5% in August, according to the Bureau of Economic Analysis. That was just above a 3% rate in June that was the lowest in 14 years, dating back to the early days of the financial crisis.

Source: CNBC, 10.04.2022

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