Control Panel: Debt ceiling crisis resolved?

Again, I am being very specific because the Fed and Powell are very precise and nuanced in how they word their statements.

@wendybg said

The above quote is specifically saying that the Fed has said that it

  1. will not reduce/cut rates (take a very specific policy action of not cutting rates)
  2. until inflation is measured at 2% and remains at 2% for some time (until a very specific event occurs)

My point is the Fed has never said that inflation needs to get to a specific number (y%) before the Fed will take a specific action (raise, pause, cut). But maybe I missed it.

I have seen no quote from the Fed or Powell or anyone on this thread or this board that contains elements 1 and 2 above. The Fed and Powell do not make statements that specific about their future actions as far as I have seen.

Let’s look at what has been offered.

@wendybg
Three posts in this thread, yet no specific quote provided.
If the the Fed has said it many times and Google can find it so easily, then humor me for five minutes and provide one of the many quotes. If you’ve read my posts, then you know I am not too lazy to find it. I literally have never seen such a quote, so I am asking the original poster to support her statement with evidence (seems reasonable, or don’t bother, this is just an anonymous message board where we humor ourselves).

@MataroPete

This quote doesn’t even mention reduce or cut rates. It just says policy needs to be sufficiently restrictive (which could be many different plausible Fed rate decisions) so that inflation eventually gets to 2%. Nothing about cutting or not cutting or pausing or anything on the way to 2% or at 2%. Saying 2% over time can mean many, many different policy scenarios (for example, inflation could go to 3% and the Fed could start cutting then and inflation could still then get to 2% over time - again, one of many policy scenarios that might lead to 2%).

@buynholdisdead

(Powell says Fed will not change 2% inflation goal | Reuters)
Again, this quote says nothing about rate cuts when/if inflation gets to 2%. It just says the target is 2%. Nothing about taking a specific action (raise, pause, cut) when a specific level of inflation is reached.

@rainphakir
This link (https://www.cnbc.com/2023/02/20/the-federal-reserves-2percent-inflation-targeting-policy-explained.html) doesn’t even contain a quote from Powell or the Fed.

2 Likes