The release of CPI for January again dashed optimism for continued disinflation and near-term rate declines by the Fed. Now, market participants foresee the Fed’s first cut in rates coming around mid-year instead of the spring and the cumulative cut in rates of 75 to 100 basis points in 2024 (100 basis points equal one … Continue reading The Remaining Inflation Problem
Further Disinflation?
Economic growth over the second half of 2023 was brisk. Real GDP expanded at a 4 percent annual rate over the second half of 2023, up from a 2 percent rate in the first half and only ¾ percent over all of 2022. Moreover, initial claims for unemployment insurance thus far in January are not … Continue reading Further Disinflation?
Thomas D. Simpson, PH.D. 