Money

CHAIR POWELL."Inflation has moderated since the middle of last year, and readings over the summer were quite favorable. But a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal. The process of getting inflation sustainably down to 2 percent has a long way to go. Despite elevated inflation, longer-term inflation expectations appear to remain well anchored, as reflected in a broad range of surveys of households, businesses, and forecasters, as well as measures from financial markets. The Fed’s monetary policy actions are guided by our mandate to promote maximum employment and stable prices for the American people. My colleagues and I are acutely aware that high inflation imposes significant hardship as it erodes purchasing power, especially for those least able to meet the higher costs of essentials like food, housing, and transportation." more »

FTC Issues Annual Report to Congress on Agency’s Actions to Protect Older Adults; Adults 60 and older report losses of $1.6 billion in 2022 to scams. The analysis of fraud reports ...showed that adults aged 60 and over were substantially less likely to report losing money to fraud than adults aged 18-59... Consumers 80 and older reported losing a median of $1,750 to fraud, while those in their 70s reported a median loss of $1,000, with both numbers increasing over 2021...The report calls on Congress to update the FTC Act in response to the Supreme Court’s 2021 ruling in the AMG Capital Management case, which severely limited the FTC’s ability to recover money that older adults and other consumers lose to scammers. more »

Christopher J. Waller: "The data in the past few months has been overwhelmingly positive for both of the FOMC's goals of maximum employment and stable prices. Economic activity and the labor market have been strong, with what looks like growth well above trend and unemployment near a 50-year low. Meanwhile, there has been continued, gradual progress in lowering inflation, and moderation in wage growth. This is great news, and while I tend to be an optimist, things are looking a little too good to be true, so it makes me think that something's gotta give. Either growth moderates, fostering conditions that support continued progress toward our 2 percent inflation objective, or growth doesn't, possibly undermining that progress. But which is going to give — the real side of the economy or the nominal side?" more »

Michelle W. Bowman:"Many central banks are facing challenging and uncertain times as they strive to restore price stability and promote financial stability. A stable and resilient financial system is essential for the effective transmission of monetary policy and for a healthy economy. Healthy economies foster financial stability and financial stability fosters healthy economies. It is essential that central banks facing high inflation bring inflation back to target. A failure to do so would only lead to greater financial stability risks through less certain and unstable economic conditions and through reduced central bank credibility. It is, therefore, necessary that central banks, in collaboration with other financial regulators as appropriate, develop and use supervisory and prudential regulatory tools to promote financial stability." more »