August 25, 2022 - Inflation eased slightly in July. Many speculated that inflation has reached its peak. That may be wishful thinking when $244 billion of new spending will add more fuel to inflation as a result of the forgiven federal student debt by President Biden. No doubt, expect higher interest rates to come from next Fed meeting.
Business intelligence is only valuable if we can digest it. What can we get from ELAINE in one minute if we let it read an article of our choosing? Here is an understanding from ELAINE on an article "Jerome Powell's Dilemma: What if the Drivers of Inflation Are Here to Stay?":
Key Focus -
"Before the emergence of these three factors, the Fed could raise rates at a leisurely pace and could pursue policies that simultaneously kept unemployment and inflation low, something economists later dubbed the "divine coincidence.""
"Fed cut rates to near zero in 2008 to stimulate economic activity, held them there until 2015, then raised them at a glacial pace by historical standards. The unemployment rate fell below 4% in 2018, and inflation stayed at or just below the central bank's 2% target"
"To counter the impact of a decline in global commerce and persistent shortages of labor, commodities and energy, central bankers might lift interest rates higher and for longer than in recent decades - which could result in weaker economic growth, higher unemployment and more frequent recessions."
and abstractions that inspire creative thinking:
Tailwind:
(inflation, growth)
(fed, demand)
Headwind:
(inflation, unemployment)
(fed,unemployment)
(inflation, fed,unemployment)
(inflation, fed,tolerating)
(inflation,global)
(inflation,fed,policies)
(inflation,policies)
(inflation,economy)
(inflation,bank)
(inflation,labor)
Imperatives:
inflation,fed,powell)
(fed,risks)
(inflation,powell)
(inflation,economy)
(fed,growth)
(inflation,fed,risks)
(inflation,fed,retreat)
(inflation,fed,recede)
(inflation,policy)
(inflation,economic)
Join ELAINE Community to see what you have been missing.