The fact that inflation in the US has fallen to 7.1% is good news for several reasons. So says macroeconomist Edin Mujagic. Although inflation is still high, according to Mujagic it is the fifth consecutive time and after three consecutive declines we can already conclude that the peak is behind us.
Tonight, Federal Reserve Chairman Powell will hold a press conference, according to Mujagic, he will hint that the Fed cannot afford to stop rate hikes for now. “But since the move is to the downside, it won’t be long before the Fed also has good news for the outside world.”
Two more raises
“The Fed said over and over to raise interest rates to five, now it’s at four percent. One or two more raises and you’re there.’ And it will also be good news for Europe, whose economy is elastically linked to that of the United States. There is therefore a good chance that inflation will drop again in a few months.
Meanwhile, wages in the United States are rising, now by just over 5 percent, next year it will be 6 percent. “It won’t be long before people see their wages rising faster than inflation for the first time in a long time. This has two benefits. You have more money left and it does wonders for mood. It’s a good time, 2023 will be a year of recession or low economic growth, so any help is welcome.”
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
