US Fed: High Interest Rates Likely ‘For Some Time’

Photo: AP [via Forbes]

The Facts

  • In an opening speech at the annual Jackson Hole Economic Symposium in Wyoming on Friday, Federal Reserve (Fed) chairman Jerome Powell signaled that the US central bank is expected to keep raising interest rates and that they're likely to remain high for "some time."

  • The annual gathering is a conference featuring central bankers from around the world that consists of a sequence of papers on economic ideas related to the year's topic, with this year's being "Reassessing Constraints on the Economy and Policy."


The Spin

Establishment-critical narrative

Bringing down prices must be a top priority for the Fed, but the standard approach of aggressive interest rate hikes is a cruel method that's only making life harder for Americans who are feeling the pressure. With a recession on the horizon, the Fed's so-called solution is seemingly worse than the problem.

Pro-establishment narrative

It's clear that there are tough times ahead, but we have to prioritize long-term health over short-term gains. While the process of bringing down inflation is painful, the alternative is far worse. Under The Fed's guidance, there's hope that this will be resolved as swiftly as possible.

Nerd narrative

There's a 50% chance that fed funds rate will be at least 2.9% by December 2023, according to the Metaculus prediction community.


Establishment split

CRITICAL

PRO

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