Economists Predict Prolonged High Inflation Throughout the Year

InflationMoney Matters
Written By Jennifer Joslyn

😢 Economists Predict Prolonged High Inflation Throughout the Year.

Despite the Federal Reserve's best efforts to curb inflation, recent assessments indicate that their progress has fallen short of initial expectations. Even with the benchmark interest rate maintained at 16-year high, inflationary pressures persist, prompting concerns among economists and financial experts. In fact, a group of 45 economists has collectively analyzed the current landscape and arrived at a median forecast, predicting an inflation rate of approximately 4.2%. The Federal Reserve's endeavor to tackle inflation has faced hurdles and unexpected resistance, leading to a scenario where inflationary forces remain stubbornly elevated. These challenges have caused policymakers and economic analysts to reevaluate their strategies and explore alternative approaches to address the persistent price increases across various sectors.

Read more from AP News ▶

Featured
Stocks Edge Higher Amid Choppy Week
Stocks Edge Higher Amid Choppy Week

Stocks nudged higher on Friday, wrapping up a volatile week.

UK Economy on the Rise With Strongest Growth in Nearly Three Years
UK Economy on the Rise With Strongest Growth in Nearly Three Years

The UK's economy experienced its strongest growth in almost three years, with a 0.6% expansion in the first quarter of 2024, according to the Office for National Statistics.

Home Equity Loans Could Supercharge the U.S. Economy
Home Equity Loans Could Supercharge the U.S. Economy

Meredith Whitney, the once-celebrated financial forecaster, is eyeing a potential game-changer for the U.S. economy, and it doesn't involve government spending.

Offshore Wind Farm Project Terminated Due to Economic Challenges
Offshore Wind Farm Project Terminated Due to Economic Challenges

Developers of the proposed offshore wind farm near Long Beach, Long Island, announced the termination of the Empire Wind 2 project due to economic challenges - including inflation, increased interest rates, and supply chain disruptions.

2023 Showcased Mixed Economic Shifts in the United States
2023 Showcased Mixed Economic Shifts in the United States

In 2023, the U.S. economy saw a combination of positive and negative trends.

Harry Dent Predicts Imminent Market Crash in 2024
Harry Dent Predicts Imminent Market Crash in 2024

Economist Harry Dent is making a dire prediction for the markets in 2024, citing overvalued markets and excessive stimulus spending as causes for concern.

San Francisco Gears Up for APEC Conference Amidst Homelessness Challenge
San Francisco Gears Up for APEC Conference Amidst Homelessness Challenge

Workers in San Francisco are preparing the city for the Asia-Pacific Economic Cooperation (APEC) conference, where politicians, executives, and journalists from around the world are expected to gather.

Food Insecurity Soars in the U.S. in 2022, Hitting Crisis Levels Amid Economic Challenges
Food Insecurity Soars in the U.S. in 2022, Hitting Crisis Levels Amid Economic Challenges

Food insecurity in the United States surged in 2022, reaching levels not seen since the aftermath of the financial crisis, according to government data from the U.S. Department of Agriculture.

Strong Q3 Economic Growth in the U.S. Driven by Consumer Spending Surpasses Expectations
Strong Q3 Economic Growth in the U.S. Driven by Consumer Spending Surpasses Expectations

The U.S. economy saw stronger-than-expected growth in the third quarter, expanding at a 4.9% annualized rate, driven primarily by robust consumer spending.

JP Morgan CEO Jamie Dimon Warns of Global Impact Amid Middle East Conflict Escalation
JP Morgan CEO Jamie Dimon Warns of Global Impact Amid Middle East Conflict Escalation

JP Morgan's CEO, Jamie Dimon, has expressed concerns about the escalating conflict in the Middle East, particularly Israel's expected ground offensive on Gaza.

There Is Soaring Growth in the Global Logistics Market
There Is Soaring Growth in the Global Logistics Market

The Global Logistics Market is on a significant growth trajectory, with projections indicating a substantial increase in its size.

US Inflation Falls, but Challenges Persist in Reaching Fed's 2% Target Amid Economic Pressures
US Inflation Falls, but Challenges Persist in Reaching Fed's 2% Target Amid Economic Pressures

Inflation in the US has dropped from 9% to 3% over the past year, but reducing it to the Federal Reserve's 2% target rate proves to be a tougher task.

Resilient U.S. Job Market Defies Recession Predictions Amid Cooling Conditions
Resilient U.S. Job Market Defies Recession Predictions Amid Cooling Conditions

The job market in the United States has shown signs of cooling over the summer, but it remains strong enough to dispel fears of a recession despite higher interest rates.

Is a 'Rolling Recession' or 'Richcession' a Potential Savior for the US Economy?
Is a 'Rolling Recession' or 'Richcession' a Potential Savior for the US Economy?

Despite warnings of an impending recession, the U.S. economy is showing signs of acceleration.

The US has not gone through a recession
The US has not gone through a recession

According to a recent report by ISS ESG, a full-blown recession has not occurred, but there has been a lackluster performance in a low-growth environment, coupled with high inflation, interest rates, and tighter liquidity due to a recent banking crisis.

Declining Cargo Revenue Signals Optimistic Travel Industry Recovery for Airlines as Travel Demand Rebounds
Declining Cargo Revenue Signals Optimistic Travel Industry Recovery for Airlines as Travel Demand Rebounds

Airlines' cargo revenue is experiencing a significant slump, with Delta, United, and American reporting year-over-year declines of about 40% in their second-quarter cargo revenue.

Potential UPS Strike Threatens Supply Chain Chaos and Economic Impact
Potential UPS Strike Threatens Supply Chain Chaos and Economic Impact

With the July 31 strike deadline approaching for Teamsters at UPS, concerns are growing about the potential impact on the supply chain and the economy.

Fast-Growing States Drive $100 Billion Wealth Migration and Economic Shift
Fast-Growing States Drive $100 Billion Wealth Migration and Economic Shift

Six fast-growing states in the South, including Florida, Texas, Georgia, the Carolinas, and Tennessee, are now contributing more to the national GDP than the Northeast, according to Bloomberg.

Dockworker Strike in Canada Threatens Economy and Reputation as Exports Are Impacted
Dockworker Strike in Canada Threatens Economy and Reputation as Exports Are Impacted

A prolonged strike by dockworkers on Canada's west coast has raised concerns among business groups about the country's economy and reputation.

The South Emerges as the New Economic Powerhouse with a US$100B Wealth Migration
The South Emerges as the New Economic Powerhouse with a US$100B Wealth Migration

The Southeastern region of the United States, known as the "New New South," is experiencing a significant economic shift with the rise of electric-vehicle factories and battery plants.

According to the Treasury Secretary's Own Criteria, We Have Entered a Recession Once Again
According to the Treasury Secretary's Own Criteria, We Have Entered a Recession Once Again

Troubling data released by the Department of Commerce reveals that the economy has experienced a decline in gross domestic income (GDI) over the past six months, contradicting President Joe Biden's assertion of a "strong as hell" economy.

Federal Reserve Chair Powell Reaffirms Expectation of Further Rate Hikes Amid Persistent High Inflation
Federal Reserve Chair Powell Reaffirms Expectation of Further Rate Hikes Amid Persistent High Inflation

Federal Reserve Chair Jerome Powell reaffirmed the likelihood of raising interest rates at least once more this year due to persistent inflation in the service sector and a tight job market.

Expectations of Further Rate Hikes in 2023
Expectations of Further Rate Hikes in 2023

Federal Reserve officials expect to raise interest rates further this year to combat excessive inflation in the United States, according to Chair Jerome Powell.

Macy's and Costco Issue a Cautionary Note on the Economy
Macy's and Costco Issue a Cautionary Note on the Economy

Major retailers Macy's and Costco have raised concerns over changing consumer behavior and a pullback in spending, signaling potential economic challenges for the US.

Companies Repatriating Production due to War, Economic Woes, and Social Media
Companies Repatriating Production due to War, Economic Woes, and Social Media

As global supply chains face disruptions caused by factors like the Ukraine conflict and China's economic slowdown, a growing number of companies are opting to bring their production back home.

Federal Reserve's Closely Tracked Inflation Measure Rises in April
Federal Reserve's Closely Tracked Inflation Measure Rises in April

A key measure of US prices, closely monitored by the Federal Reserve, showed an increase in April, indicating persistent inflationary pressures in the economy.

Understanding the Debt Ceiling
Understanding the Debt Ceiling

The Republicans, led by McCarthy, are insisting on spending cuts in exchange for raising the debt limit, arguing that the current national debt is unsustainable.

The Global Economic Implications of US Debt Burden
The Global Economic Implications of US Debt Burden

The escalating debt crisis in the United States is raising concerns about an impending recession that could have far-reaching consequences, not only for the US but for the global economy as a whole.

Federal Authorities Seek Solutions Amidst Inflation Surge
Federal Authorities Seek Solutions Amidst Inflation Surge

Since March 2022, there has been a streak of 10 consecutive interest rate hikes.

G-7 Prioritizes Strengthening Banks and Supply Chains Amidst Accusations of Hypocrisy
G-7 Prioritizes Strengthening Banks and Supply Chains Amidst Accusations of Hypocrisy

The Group of Seven (G-7) advanced economies held closed-door financial talks in Japan, focusing on issues such as bank runs, cybersecurity, and building more reliable supply chains for economic security.

Jennifer Joslyn
Previous

New Shipping Restrictions Introduced by the Panama Canal Authority
Next

Hybrid Shoppers on the Rise: Implications for Grocery Retailers