Inflation is finally coming down, but Federal Reserve Chair Jerome Powell warned that the U.S. economy is not out of the woods yet.
In a question-and-answer session at the Economic Club of Washington, DC, the nation's top banker said that he expects the process to take some time.
“The disinflationary process, the process of getting inflation down, has begun and it’s begun in the goods sector, which is about a quarter of our economy,” he said. “But it has a long way to go. These are the very early stages.”
The comments track with Powell's previous statements that goods inflation is only part of the run-up in prices, and that services are now one of the biggest drivers of inflation.
Despite Powell sticking to his guns that inflation could be here for a while, stocks got a bump on Tuesday following the comments. Many investors appear to be holding out hope that the Fed will soon pull back on rate hikes, which would give equity markets some room to breathe.
Powell, for his part, stressed that it will likely take another full year for inflation to be brought under control. “We expect 2023 to be a year of significant declines in inflation. It’s actually our job to make sure that that’s the case,” he said.
Still, the Fed has already started moderating its stance. Earlier this month, the Fed announced a 25-basis-point hike, down from 50 basis points enacted at its previous meeting.
Paul Verna of Insider Intelligence breaks down how the company is positioned, whether they can make their streaming service profitable, and the upper limit of streaming bundle prices.
From Flamin’ Hot Cheetos to Sweet Heat Starburst, America’s snacks are getting spicier. Now, Coca-Cola wants in on the trend. The beverage giant introduced Coca-Cola Spiced, the first new permanent offering to its North American portfolio in three years.
Taylor Swift’s camp is hitting Jack Sweeney, a junior at the University of Central Florida, with a cease-and-desist letter that blamed his automated tracking of her private jet for tipping off stalkers as to her location.
Surprise, surprise: tech is still the sector to watch, according to Karyn Cavanaugh, Chief Investment Officer at Carolinas Wealth Management. Learn how to properly diversify your portfolio.
Facebook and Instagram users will start seeing labels on AI-generated images in their feeds. Hopefully this will save time for everyone zooming in each picture to see how many fingers someone's hand has.