WSJ's Nick Timiraos discusses the Fed's path to rate cuts

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Amid the ongoing uncertainty surrounding Federal Reserve rate cut expectations, The Wall Street Journal's Chief Economics Correspondent Nick Timiraos joined Yahoo Finance to share his outlook on the central bank's monetary policy.
Timiraos outlines three potential scenarios the Fed may face. In the first scenario, he describes strong growth with inflation "making steady progress'" towards the Fed's target. The second scenario involves strong growth but "inflation [remaining] sticky" and still higher than the target. Timiraos warns that the third and worst-case scenario is "growth contraction, with high inflation."
Addressing the Fed's possible policy responses, Timiraos notes that with the federal funds rate above the inflation rate and a slowdown in wage growth, "it's gonna require them to soften the labor market more." However, he acknowledges that the labor market is already showing signs of cooling, prompting the key question, "what's happening with inflation?"
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I really question how anyone can even fathom the idea of rate cuts in any form in 2024 at this point. It's clear that the Fed needs to raise rates otherwise it is basically pouring gasoline on a fire with any possible cuts making it worse.

jgwinnel
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why did the Fed not include the food and energy in the CPI report for Inflation? what are the advantages and disadvantage with or without that

georgele
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Why did he say “you know” at 0:29? That is why I’m watching. I don’t know.

dirtydan
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Rates not going down with this ongoing pressure on oil

-_MR_-
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The irony is that the rate hikes are adding to inflationary pressures & by the way there is no wage price sprial so the belief that wages are growing too fast is somlly not true.

mikebostic
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WHat is Nick Timiraos smoking. Dude needs to be realistic.

rohanrodrigues