Federal Reserve Chair Jerome Powell spoke on Wednesday to the Stanford Business, Government and Society forum.
Markets expect the Fed to start down the path of easing in June or July, with a total of three cuts coming by the end of 2024.
Policymakers need more evidence that inflation is moving toward the Fed's 2% goal.
Powell emphasized the need for more evidence that inflation is easing before cutting interest rates. The appearance followed the Fed's meeting last month at which it held interest rates steady and Powell indicated that the central bank is likely to lower interest rates later this year.
Powell's comments echo those of other officials who have indicated an unspecified number of rate reductions are coming but the timing is uncertain. Atlanta Fed President Raphael Bostic said Wednesday he thinks there could be just one cut this year, though his colleagues on the Federal Open Market Committee have indicated three.
Federal Reserve Chair Jerome Powell spoke on Wednesday to the Stanford Business, Government and Society forum, emphasizing the need for more evidence that inflation is easing before cutting interest rates. The appearance followed the Fed's meeting last month at which it held interest rates steady and Powell indicated that the central bank is likely to lower interest rates later this year. However, he also stated that policymakers need more evidence that inflation is moving toward the Fed's 2% goal.
Powell's comments echo those of other officials who have indicated an unspecified number of rate reductions are coming but the timing is uncertain. Atlanta Fed President Raphael Bostic said Wednesday he thinks there could be just one cut this year, though his colleagues on the Federal Open Market Committee have indicated three. Markets expect the Fed to start down the path of easing in June or July, with a total of three cuts coming by the end of 2024.
Powell's speech comes as inflation has cooled notably in recent months, running at 2.5 percent in February, far below its 7.1 percent peak in 2022 for that gauge and just slightly above the Fed's 2 percent goal. The labor market has also remained surprisingly resilient, with the economy adding 275,000 jobs last month while the unemployment rate sat at 3.9 percent.
Despite these positive signs, Fed officials still expect rate cuts this year but not anytime soon. Steve Eisman has warned against cutting rates, stating that it risks creating a stock market bubble if it does.
Federal Reserve Chair Jerome Powell speaks Wednesday to the Stanford Business, Government and Society forum.
<br> He will deliver prepared remarks followed by a question-and-answer session with a moderator.
The appearance follows the Fed's meeting last month at which it held interest rates steady and Powell indicated that the central bank is likely to lower interest rates later this year.
<br> But he also said the timing isn't certain and policymakers need more evidence that inflation is moving toward the Fed's 2% goal.
Since then, other officials have echoed those comments. They see an unspecified number of rate reductions coming but the timing is uncertain.
<br> At Atlanta Fed President Raphael Bostic said Wednesday he thinks there could be just one cut this year, though his colleagues on the Federal Open Market Committee have indicated three.<br>
Markets expect the Fed to start down the path of easing in June or July, with a total of three cuts coming by the end of 2024.
<br>Fed officials still expects rate cuts this year, but not anytime soon
<br>
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is deceptive in several ways. Firstly, the title implies that Jerome Powell will be speaking about economic policy at Stanford University when in fact he is only participating in a forum hosted by Stanford Business, Government and Society. Secondly, the author misrepresents what Powell said during his meeting with the Federal Reserve last month by stating that he indicated interest rates would likely lower later this year. In reality, Powell stated that policymakers need more evidence of inflation easing before making any decisions about rate cuts. Lastly, the article quotes Atlanta Fed President Raphael Bostic saying there could be only one rate cut this year when in fact his colleagues on the Federal Open Market Committee have indicated three possible cuts.
The title implies that Jerome Powell will be speaking at Stanford University but he is only participating in a forum hosted by Stanford Business, Government and Society.
Fallacies
(70%)
The article contains several informal fallacies. The author uses an appeal to authority by citing the opinions of other officials without providing any evidence or context for their statements. Additionally, the author uses inflammatory rhetoric when describing the potential consequences of rate cuts and creating a stock market bubble.
Fed Chair Jerome Powell emphasizes need for more evidence that inflation is easing before cutting rates
Atlanta Fed President Raphael Bostic said Wednesday he thinks there could be just one cut this year, though his colleagues on the Federal Open Market Committee have indicated three.
Steve Eisman says the Fed shouldn't cut rates, risks creating a stock market bubble if it does
Bias
(75%)
The article contains a statement that the Fed Chair is likely to lower interest rates later this year. This implies a monetary bias as it suggests that the author believes in lowering interest rates.
] Federal Reserve Chair Jerome Powell speaks Wednesday to the Stanford Business, Government and Society forum. He will deliver prepared remarks followed by a question-and-answer session with a moderator.
Federal Reserve Chair Jerome Powell speaks Wednesday to the Stanford Business, Government and Society forum.
The appearance follows the Fed's meeting last month at which it held interest rates steady and Powell indicated that the central bank is likely to lower interest rates later this year.
Atlanta Fed President Raphael Bostic said Wednesday he thinks there could be just one cut this year, though his colleagues on the Federal Open Market Committee have indicated three.
Fed officials still expects rate cuts this year, but not anytime soon
Steve Eisman says the Fed shouldn't cut rates, risks creating a stock market bubble if it does
Accuracy
<br>He will deliver prepared remarks followed by a question-and-answer session with a moderator.
<br>The appearance follows the Fed's meeting last month at which it held interest rates steady and Powell indicated that the central bank is likely to lower interest rates later this year.
But he also said the timing isn’t certain and policymakers need more evidence that inflation is moving toward the Fed's 2% goal.
<br>Since then, other officials have echoed those comments. They see an unspecified number of rate reductions coming but the timing is uncertain.<br>
<br>Markets expect the Fed to start down the path of easing in June or July, with a total of three cuts coming by the end of 2024.
<br>Steve Eisman says the Fed shouldn't cut rates, risks creating a stock market bubble if it does
Federal Reserve Chair Jerome Powell stated on Friday that there is 'no reason' to believe the US economy is near a recession
Powell made this statement at an event in San Francisco
The economy is in a good place', according to Powell
Accuracy
`The economy is in a good placeⰴaccording to Powell
Deception
(50%)
The article is deceptive in several ways. Firstly, the title of the article suggests that there are no reasons to think a recession is imminent when in fact Powell's statement contradicts this claim. Secondly, Powell's statement about inflation coming down significantly without triggering a major economic downturn is also misleading as it implies that inflation has been brought under control which is not the case. Thirdly, the article quotes an expert who predicts a recession in 2024 and then dismisses this prediction by stating that Powell's statement contradicts this claim.
The article quotes an expert who predicts a recession in 2024 and then dismisses this prediction by stating that Powell's statement contradicts this claim.
The title of the article suggests that there are no reasons to think a recession is imminent when in fact Powell's statement contradicts this claim.
Powell's statement about inflation coming down significantly without triggering a major economic downturn is also misleading as it implies that inflation has been brought under control which is not the case.
Fallacies
(85%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by citing Federal Reserve Chairman Jerome Powell as a source for their information. Additionally, the author uses inflammatory rhetoric when they describe inflation as 'too high' and emphasize that it is still not under control despite recent progress in bringing it down.
Federal Reserve Chair Jerome Powell said Friday that there’s no reason to think the U.S. economy is close to a recession.
Bias
(85%)
The author of the article is Julia Shapero and she has a clear bias towards the Federal Reserve Chairman Jerome Powell. The author quotes him extensively without providing any counter-arguments or alternative perspectives. Additionally, the title of the article itself suggests that there is no reason to think about a recession which could be seen as an attempt to downplay potential economic risks.
Federal Reserve Chair Jerome Powell said Friday that there’s ‘no reason’ to think the U.S. economy is close to a recession.
Powell has maintained that the central bank needs to see more 'good' data before cutting rates.
The article contains several examples of deceptive practices. Firstly, the author quotes Powell saying that they won't make decisions based on political calendars or anything like that. However, this statement is not supported by any evidence in the article and appears to be a personal opinion rather than a factual assertion.
Possibility of a Recession is Not Elevated Now
Fed’s Powell: We Won’t Make Decisions Based on Political Calendars or Anything Like That
Fallacies
(70%)
The article contains several examples of informal fallacies. The author uses inflammatory rhetoric by stating that the Federal Reserve's preferred gauge of underlying inflation cooled last month while household spending rebounded, implying a negative connotation towards the state of the economy. Additionally, there are multiple instances where Powell is quoted as saying
We won’t make decisions based on political calendars or anything like that
Integrity is everything
Possibility of a Recession is Not Elevated Now
Bias
(85%)
The article contains multiple examples of monetary bias. The author repeatedly mentions the Federal Reserve's decision-making process and their focus on inflation, which is a key aspect of monetary policy. Additionally, the article quotes Powell stating that they will not make decisions based solely on political calendars or anything like that.
Fed’s Powell: We Won’t Make Decisions Based on Political Calendars or Anything Like That
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Powell on where rates will settle out over the long run: We'll find out with everyone else.
. The Federal Reserve chair, Jerome H. Powell, said on Friday that resilient economic growth is giving the central bank the flexibility to be patient before cutting interest rates.
Fed officials raised interest rates sharply from early 2022 to mid-2023, and they have left them at about 5.3 percent since last July.
. The goal is to keep rates high enough, for long enough, to wrestle inflation back under control.
Accuracy
. Fed officials raised interest rates sharply from early 2022 to mid-2023, and they have left them at about 5.3 percent since last July.
The goal is to keep rates high enough, for long enough, to wrestle inflation back under control.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author uses a quote from Jerome Powell to suggest that he said 'strong economic growth gives Federal Reserve officials room to be patient', when in fact the full context of his statement shows that he was emphasizing political independence and not suggesting any specific policy decision.
The article suggests that Jerome Powell said 'strong economic growth gives Federal Reserve officials room to be patient' but this is a misrepresentation. The full quote from Powell is: 'We can, and we will be, careful about this decision because we can be.'
The article states that the Fed has raised interest rates sharply from early 2022 to mid-2023 and left them at about 5.3 percent since last July. However, it fails to mention that these high interest rates have been in place for over a year now and are not new.
Fallacies
(85%)
The article contains an appeal to authority fallacy by citing Jerome Powell as the source of information. The author also uses inflammatory rhetoric when describing inflation and its impact on the economy.
> Inflation ran at 2.5 percent in February, a report on Friday showed, far below its 7.1 percent peak in 2022 for that gauge and just slightly above the Fed's 2 percent goal.
Bias
(85%)
The author uses language that implies the Federal Reserve is in a position of power and control over the economy. The phrase 'the Fed has left interest rates at about 5.3 percent since last July' suggests that they have the ability to change them as they see fit.
> We can, and we will be, careful about this decision <br> because we can be.
