FOX Business host Charles Payne said Thursday that members of the Federal Reserve seem clueless about how their plans will affect the economy, adding that he doesn’t want to “get a grip” on the issue. I warned you that it wasn’t.
The U.S. Federal Reserve (Fed) announced Wednesday that it will lower the federal funds rate to its target range of 4.25% to 4.50% in an effort to ease inflation, marking the third time this year. On “Kudlow,” Fox Business host Larry Kudlow criticized the Fed’s actions and asked Payne for his thoughts on the central bank’s “mistakes” in dealing with inflation. (Related: ‘Disastrous Burden’: Rose-colored spin on Joe Biden’s economic legacy ignores reality)
“What I’m saying is, we’re a stone’s throw from what the Fed is doing,” Kudlow said.
“They are kidding. They say black is white and white is black. How do you understand central banks that make mistakes and refuse to admit that their models are failing and their inflation strategies are failing? Is it possible? How do you think about it?
Payne answered.
“Jay Powell said yesterday that job searches are in a moderate setback. I used a chart on the show yesterday and today. No, it’s falling off a cliff. It’s collapsed,” Payne said. .
“Long-term unemployment for more than 27 weeks is skyrocketing. Job postings on Indeed have fallen off a cliff. So when you hear the chairman of the Federal Reserve talking about these things in a very casual manner, I get really scared.”
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U.S. stocks had one of their worst days of the year following the Fed’s interest rate cut announcement, with the S&P 500 down 178 points (3%), the Dow Jones Industrial Average down 1,123 points (2.6%), and the Nasdaq Composite Stock indexes fell. 3.6%, According to Go to CBS News. Chairman Powell said he believed it was the “right decision” to cut rates, saying, “The slower pace of rate cuts next year reflects this year’s rise in inflation.”
“What’s happening is we don’t know what’s going on,” Payne said.
“When you rely on data, and the data gets revised significantly every month. Are you trying to say we’re basing policy on misinformation? You’ve got Ph.D.s from all over the world. Access any business. Stay ahead of the curve.”
Economists had expected 110,000 jobs to be added in October, but U.S. nonfarm payrolls totaled just 10,000, according to data released in November by the Bureau of Labor Statistics (BLS). Only 2000 people were added. Most of BLS recent reportsThe report released on Dec. 6 said nonfarm payrolls rose by 227,000 people, “little change” from November’s unemployment rate of 4.2%, compared with December’s unemployment rate of 4.1%. , it was found that 7.1 million people are currently unemployed.
Inflation, a major concern for both voters and businesses, continues to impact the US, reaching 9.1% in June 2022. Despite the rate cuts, inflation remains above the Fed’s 2% target and is currently expected to remain above that level through 2027. According to Go to Market Watch.
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