The Fed doesn't need to get to 2.0% inflation at a minimum, says former CEA chairman Jason Furman

Jason Furman, Harvard’s Kennedy School of Government professor and former CEA chairman under President Obama, joins CNBC's 'Squawk Box' to discuss why he believes there is no room for a rate cut in June, whether the Fed’s 2% inflation target is wise, and more.

Пікірлер: 92

  • @rickhayes-oh2zm
    @rickhayes-oh2zmАй бұрын

    I know because they are never going to get there

  • @jonathantaylor6926

    @jonathantaylor6926

    Ай бұрын

    They have no choice. Can't have cheap money and high inflation. Who is going to loan money at 3% if inflation is 4%? Nobody.

  • @TheShadeManGuitar
    @TheShadeManGuitarАй бұрын

    Takes rates to 7.5 and watch how fast we get there.

  • @leobutler7619
    @leobutler7619Ай бұрын

    If we cut rates this year say goodbye to the American economy

  • @KrustyDora

    @KrustyDora

    Ай бұрын

    Howcome?

  • @axe863

    @axe863

    Ай бұрын

    ​@@KrustyDora Inflation expectations will become unanchored...... if the Feds credibility erodes... it would be very expensive to control inflation in the future

  • @briantep458

    @briantep458

    Ай бұрын

    you know its possible to cut rates 3 times at 25 bps each right? Sometimes slow and steady wins the race

  • @tedstriker6743
    @tedstriker6743Ай бұрын

    Yes this makes me so upset we’re even talking about moving the target higher now! Will the government stop spending and the federal reserve actually do their job. No less than 2%!!

  • @ChloeCarter-kd7gz
    @ChloeCarter-kd7gzАй бұрын

    Absolutely !!!! I love I'll have to be debt- free in every sense before purchasing my first supercar. The best thing to do with your money is to infuse rightly because money left saving will end up with no returns.

  • @EricaWaters-lr6zw

    @EricaWaters-lr6zw

    Ай бұрын

    You don't need that much, as long as you have 250k to 350k in cash, and earn at least 40k plus is fine. It not like you are going to pay the car off, get the car, drive it for a year or two then get something else. You don't need millions of manov to oniov nico thinnc

  • @JessicaKeith-uj1jq

    @JessicaKeith-uj1jq

    Ай бұрын

    @@EricaWaters-lr6zw No doubt being buoyant financially and able to afford these luxuries cannot be overemphasized, making smart plans and setting up diversified investment strategies is quite essential.

  • @BrianAlbert-hh3pi

    @BrianAlbert-hh3pi

    Ай бұрын

    @@JessicaKeith-uj1jq Most people miss it but the secret to retiring comfortably is finding a way to make returns while your money works for you. My Dad, as i remember started saving for retirement quite late but I know he was making more than 10k returns from his investments monthly and it was completely passive

  • @JessicaKeith-uj1jq

    @JessicaKeith-uj1jq

    Ай бұрын

    @@BrianAlbert-hh3pi Our family got introduced to a financial consultant about four years before my dad retired. That was what changed things, and I think my retirement income will be on the right track, luxury cars and trips

  • @JessicaKeith-uj1jq

    @JessicaKeith-uj1jq

    Ай бұрын

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  • @lcummings5287
    @lcummings5287Ай бұрын

    This guy made the most sense. Who in the world came up with this 2.0%? 2.0% is an excuse to keep rates high. 2.0% is highly improbable

  • @spatty2589
    @spatty2589Ай бұрын

    Becky looks really good today. Whatever she's done is working well for her. She looks 10 years younger. Not that my opinions matter.

  • @Carlos-im3hn

    @Carlos-im3hn

    Ай бұрын

    that guy in the background glass off her right shoulder is annoying tho !

  • @martinross6416
    @martinross6416Ай бұрын

    Powell will go down in history as the Big Inflation Fool.

  • @jonathantaylor6926
    @jonathantaylor6926Ай бұрын

    The FED can hike its target inflation rate all it wants but investors won't sleep on that. They will demand more yield to offset the higher inflation which will also crash the price of bonds and make a pile of banks insolvent when nobody wants their 10 year paper paying 1%. Furman is a clown.

  • @YesCivic-R
    @YesCivic-RАй бұрын

    Corelationship between high employment rate and inflation rate, that was the intend Fed wants 5 yerars ago.

  • @manubhatt3
    @manubhatt3Ай бұрын

    There is no need to laugh Becky, Steven Seagall didn't just took out the two most largest increases just because they were the largest increases, but because they were the most lagging indicators in his view.

  • @onionpeeler2023
    @onionpeeler2023Ай бұрын

    Tbh they should raise by another 50 basis points, and they shouldn't wait to do so...

  • @willtwain1383
    @willtwain1383Ай бұрын

    5% is the new normal, and the old normal. People are refusing to accept 5% is the goal.

  • @jonathantaylor6926

    @jonathantaylor6926

    Ай бұрын

    That's fine. But mortgage rates are going to be 12%.

  • @willtwain1383

    @willtwain1383

    Ай бұрын

    @@jonathantaylor6926 When?

  • @SonicBlue04
    @SonicBlue04Ай бұрын

    What's goin on with the dude outside the window? He good...?

  • @straightdrive6192
    @straightdrive6192Ай бұрын

    Free money . Yay ….

  • @teole6364
    @teole6364Ай бұрын

    Lagging is historical data or trend. What are those people smoking?

  • @theguildedcage
    @theguildedcageАй бұрын

    Inflation control wont stop the water rationing.

  • @jg7714
    @jg7714Ай бұрын

    2.49% rounds to 2% 😂 Anything to get those rate cuts and free money!

  • @binqian2022

    @binqian2022

    Ай бұрын

    3.5% rounds down to 2% is ok too

  • @Stud_muffin
    @Stud_muffinАй бұрын

    Higher interest rates are not going to bring down the 3 highest cost concerns: gas, food, housing. Biden admin needs to face that head on. Food chain gouging, oil company profits, and lack of reasonable housing. Billionaires are buying up multiple houses, wtf? You do have to wonder how Costco regularly runs out of $2K gold bars even with limits on how many individuals can buy per month. People are driving around in luxury cars, but probably complain about the economy while doing it. Stock market regularly hits new highs. But your average American feels the cost of the big 3. Add child care and you have a lot to complain about, and again, interest rates don't fix any of that. On the other hand you hear nothing from Trump on what he would do to fix it; more gas production is already happening, more than his admin ever produced.

  • @grahamjackson6589
    @grahamjackson6589Ай бұрын

    If only Democrats were still listening to Larry Summers instead of Bernie Sanders😏

  • @jewlzbulls
    @jewlzbullsАй бұрын

    oh but all the jobs... and the economy is strong says Biden

  • @CRORICANSOTO
    @CRORICANSOTOАй бұрын

    We will have 2 cuts this year. We are only in the start of April. Count it----2 CUTS

  • @jonathantaylor6926

    @jonathantaylor6926

    Ай бұрын

    Why? The FED going to cut because the stock market fell 1.4%? The FED needs a reason to cut.

  • @freyasourt4173
    @freyasourt4173Ай бұрын

    Overall, 51% of traders think this year would favor stocks, mutual funds, and other equity-based investments, despite Treasury yields and other safer cash-like investments paying big. I’m looking for opportunities in the market that could fetch me $1m ahead of retirement by 2025

  • @joeplummer5069

    @joeplummer5069

    Ай бұрын

    the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.

  • @clarajohnson7091

    @clarajohnson7091

    Ай бұрын

    Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.

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    @cleoarevalo7696

    Ай бұрын

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  • @janetgarretson3253

    @janetgarretson3253

    Ай бұрын

    Michael Terpin is highly qualified and experienced in the fin-market. He has extensive knowledge of portfolio diversity and also considered as a valuable resource for anyone looking to navigate the fin-market.

  • @spatty2589
    @spatty2589Ай бұрын

    Our economy is strong and doing well but one of those consequences of that is inflation. I would rather deal with inflation than job loses. Because even if millions lose their jobs there isn't any incentive for companies to lower commodity prices. We'll still be struggling to pay for milk and eggs. The government would then have to issue stimulus and unemployment $$$.

  • @jonathantaylor6926

    @jonathantaylor6926

    Ай бұрын

    So I guess Zimbabwe and the Weimar Republic had roaring economies? I wonder what happened? Lol. Debasing your currency doesn't create a strong economy. That is just absurd.

  • @erickanter

    @erickanter

    Ай бұрын

    I am glad you are ok with inflation. But a lot of people are being hurt by it big time. So far i am ok. But you act like no one is being hurt. What the government and the fed have done to America is unforgivable. Inflation is a regressive tax that hurts the most vulnerable.

  • @user-ol7tl1vf5m
    @user-ol7tl1vf5mАй бұрын

    The average cost of a home in 2017 was 125 Bitcoin. In 2022, 20 Bitcoin. Maybe folks should be asking Powell why inflation?

  • @wbsouthton
    @wbsouthtonАй бұрын

    I think 5%-10% is our future for a very long time. Is that really that bad? Retirees can earn a few bucks and believe it or not, cd income will help reduce Medicare recipients Medicaid rolls. Many qualify for assistance because of the lack of interest income. Those hidden unintended consequences.

  • @FreaksSpeaks
    @FreaksSpeaksАй бұрын

    Astonishing the experts are wrong time and again on this. Apart from that stock market is teetering on all time highs and also expects a rate cut on top. Nuts.

  • @NorCalNeel

    @NorCalNeel

    Ай бұрын

    The love of money will cause a person to feed a dying horse so they can bet on a loss cause

  • @ryann8348
    @ryann8348Ай бұрын

    It's just shelter and auto insurance. Shelter is a supply issue, which we can try to fix, and auto insurance isn't really a rate issue. We have pandemic driving habits and cars are more complex and expensive to repair. I guess we could have a movement of going back to "dumb" cars without a lot of electronics

  • @jonathantaylor6926

    @jonathantaylor6926

    Ай бұрын

    Don't eat or drive?

  • @ryann8348

    @ryann8348

    Ай бұрын

    @@jonathantaylor6926 Food is 2.2% and energy is 2.1%, which are pretty close to target. Would I like it to be lower? Sure, but it's nothing like 5.7% shelter or 22.2% auto insurance pushing transportation services to 10.4%. Also, on the topic of rate cuts, food/energy don't matter.

  • @erickanter

    @erickanter

    Ай бұрын

    @@ryann8348 Food and energy should matter. Who ever took those two out of the metrics is stupid.

  • @ryann8348

    @ryann8348

    Ай бұрын

    @@erickanter I used to think that as well. Food and energy are extremely volatile; their price is heavily determined by global market factors, rather than domestic; and they are heavily subject to natural events (droughts for beef, bird flu for eggs, hot weather for cocoa, etc etc). This makes them unreliable measures of underlying inflation

  • @jonathantaylor6926

    @jonathantaylor6926

    Ай бұрын

    @@ryann8348 Lol gas prices at the pump went up 6.2% but the liars in the Government "seasonally adjust" to make it -3%. Cooks cooking numbers. And this is all with the FFR at 5.25%... so the FED is going to ease and inflation is going to go down? Not happening.

  • @rickhayes-oh2zm
    @rickhayes-oh2zmАй бұрын

    No Mike all we need is a cpi that counts food and energy like they did in the 70's

  • @MrPorter-xi8ko
    @MrPorter-xi8koАй бұрын

    What a load of crap. Just moving the goal posts once again.

  • @jonathantaylor6926

    @jonathantaylor6926

    Ай бұрын

    Dude worked for Obama.. these are MMT clowns that legit think you just print money forever without any consequences.

  • @ReRiderChi
    @ReRiderChiАй бұрын

    Trump 2024. Save us.

  • @ChrisJohnson-ry6vq

    @ChrisJohnson-ry6vq

    Ай бұрын

    Trump gonna lose. Everybody knows that lol

  • @taylormickelson225

    @taylormickelson225

    Ай бұрын

    Cult

  • @grandmiserthe3rd434
    @grandmiserthe3rd434Ай бұрын

    Print ...........Spend ..........Crash.......!!!

  • @HughJass-jv2lt

    @HughJass-jv2lt

    Ай бұрын

    Rinse Repeat 😂

  • @FreaksSpeaks

    @FreaksSpeaks

    Ай бұрын

    Why bring logic and common sense into this. 😂

  • @illegalsmirf
    @illegalsmirfАй бұрын

    Don't worry, the rich will be fine and that's all that matters.

  • @jimbojimbo6873

    @jimbojimbo6873

    Ай бұрын

    You cry about rich people but would die to be them

  • @BrandonClark-StocksPassports

    @BrandonClark-StocksPassports

    Ай бұрын

    We sure will.

  • @user-tb1jy7rr9e

    @user-tb1jy7rr9e

    Ай бұрын

    Love it

  • @lakeguy65616
    @lakeguy65616Ай бұрын

    I expect that soon, talking heads will start talking about why the Fed should raise its inflation target to above 2%. This will just be a back door way to argue that the Fed should cut the Fed Funds rate.

  • @jonathantaylor6926

    @jonathantaylor6926

    Ай бұрын

    It's not that easy. The FED can hike its inflation target no problem but there would be consequences. Bond traders will not just ignore that- they will demand more yield. Right now the 10 year UST is paying 4.5%. Bond investors buy the 10 year paying 4.5% under the assumption that the FED will get inflation back to its 2% target. That 10 year bond should pay a real yield (4.5 - 2) of 2.5% for several years. But if the FED alters its target inflation goal to 3% now the real yield (4.5-3) would be 1.5% and bond investors can't and won't eat that... they will demand higher yields or not buy the security. The 2% target is an entirely arbitrary number but it's a significant number because current yields are all based on that 2% target.. changing that target would upend the entire system badly- because in bond yields and bond price are inversely related.. so not only do yields spike the second the FED talks about their new "3% target inflation rate" but the price of existing bonds will collapse as yields across the entire curve spike in response to the FED actions.

  • @lakeguy65616

    @lakeguy65616

    Ай бұрын

    @@jonathantaylor6926 I didn't say there would be no consequences. I think in the coming months, you'll see talking heads talking about the need to raise the inflation target. I personally think the 2% target is 1 1/2% too high.

  • @jonathantaylor6926

    @jonathantaylor6926

    Ай бұрын

    @@lakeguy65616 They can talk about it all they want but they absolutely can't do it. Countless banks would be rendered insolvent.

  • @Watcher1-jr5lo
    @Watcher1-jr5loАй бұрын

    Let that guy in and ask him

  • @jimbojimbo6873
    @jimbojimbo6873Ай бұрын

    We need small businesses to fail

  • @FreaksSpeaks

    @FreaksSpeaks

    Ай бұрын

    No, we need big business to pay their fair share.

  • @madarchod312
    @madarchod312Ай бұрын

    Europe and China dealing with deflation. USA service sector is the final straw in this inflation battle.. then its all down from here.

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