Federal Reserve Chair Powell Expresses Uncertainty Over Inflation Timeline, Holds Rate at 5.25-5.5%

Amsterdam, Netherlands Netherlands
Dow Jones Industrial Average, S&P 500, and Nasdaq index all rose on May 14, 2024
Federal Reserve Chair Jerome Powell expressed uncertainty about the length of time it may take for high interest rates to lower inflation
Home Depot (HD), Intel (INTC), Boeing (BA), Apple (AAPL), Microsoft (MSFT), Salesforce (CRM), Cisco Systems (CSCO), JP Morgan Chase & Co. (JPM) were among the best performers on the Dow Jones index
IBD MarketSurge Growth 250 name Pure Storage (PSTG) broke out past a buy point of 55.09 from a double-bottom base
Inflation data showed producer prices rose by 0.5% in April due to a surge in services prices, Powell called the report 'mixed'
On Holding (ONON) soared by 18.3%, moving above the 50-day moving average after first-quarter earnings and sales beat views
Powell reiterated that a rate hike is unlikely and expects policy rate to remain at 5.25%-5.5%
Federal Reserve Chair Powell Expresses Uncertainty Over Inflation Timeline, Holds Rate at 5.25-5.5%

Federal Reserve Chair Jerome Powell expressed uncertainty about the length of time it may take for high interest rates to lower inflation during a speech at the Foreign Bankers Association meeting in Amsterdam on May 14, 2024. He also reiterated that a rate hike is unlikely.

Powell acknowledged that inflation readings have been higher than expected and emphasized the need for patience as restrictive policy takes effect. Despite this, he expects inflation to come down throughout the year but noted that it hasn't happened yet.

The Federal Reserve has held its key overnight borrowing rate in a targeted range of 5.25%-5.5% since July 2023, which is the highest level in some 23 years. Powell stated that it's unlikely for the next move to be a rate hike and instead expects the policy rate to remain at its current level.

Inflation data released on May 14, 2024, showed that producer prices rose by a higher-than-expected 0.5% in April due to a surge in services prices. Powell called the report 'mixed' and noted that more than a quarter's worth of data is needed to make an informed judgement on whether inflation will be more persistent going forward.

The Dow Jones Industrial Average, S&P 500, and Nasdaq index all rose on May 14, 2024. The yield on the benchmark 10-year Treasury note fell slightly to 4.45%. GameStop (GME) and AMC Entertainment (AMC) continued their rally in a revived meme-stock frenzy, with gains of nearly 70% and 33%, respectively.

Home Depot (HD), Intel (INTC), Boeing (BA), Apple (AAPL), Microsoft (MSFT), Salesforce (CRM), Cisco Systems (CSCO), JP Morgan Chase & Co. (JPM) were among the best performers on the Dow Jones index, with gains of over 1% each.

IBD MarketSurge Growth 250 name Pure Storage (PSTG) broke out past a buy point of 55.09 from a double-bottom base. On Holding (ONON) soared by 18.3%, moving above the 50-day moving average after first-quarter earnings and sales beat views.

Crocs (CROX) tried to break out at a buy point of 146.79, while Skechers (SKX) also rose.


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Confidence

90%

Doubts
  • Is the surge in services prices a temporary or persistent trend?
  • Will the Federal Reserve change its stance on interest rates in the near future?

Sources

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Stocks Mixed As Powell Sees This Rate Move Likely; GameStop Soars Again In Revived Meme Frenzy

Investors.com Financial News Site Analysis - Comprehensive Report on Market Coverage and Analysis - Overall Rating: 90/100 (Highly Reliable, Informative, and Engaging Source of Financial Information). Investor's Business Tuesday, 14 May 2024 20:17
  • Unique Points
    • The Dow erased early losses and traded 0.3% higher while the S&P 500 climbed 0.5%.
    • The tech-heavy Nasdaq index rose 0.8%.
    • The yield on the benchmark 10-year Treasury note fell to 4.45%.
    • GameStop skyrocketed nearly 70% after Monday’s rally and finished the day with a 62.7% gain.
    • AMC rose in sympathy, notching a 32.8% jump.
    • Home Depot (HD) earnings came in higher than estimates but sales were just a bit lower, causing the stock to inch downward.
    • Intel (INTC) and Boeing (BA) were the best performers on the Dow Jones index with gains of over 1% each.
    • IBD MarketSurge Growth 250 name Pure Storage (PSTG) broke out past a buy point of 55.09 from a double-bottom base.
    • On Holding (ONON) soared 18.3% and moved above the 50-day moving average after first-quarter earnings and sales beat views.
    • Crocs (CROX) tried to break out at a buy point of 146.79, while Skechers (SKX) also rose.
  • Accuracy
    • The Dow Jones Industrial Average and other major indexes rose on Tuesday after hot inflation data and reassuring comments from Federal Reserve Chairman Jerome Powell.
    • Federal Reserve Chairman Jerome Powell told the Foreign Bankers’ Association in Amsterdam that the US economy has been performing well lately, despite inflation numbers.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains some inflammatory rhetoric and appeals to authority, but no formal or blatant logical fallacies were found. The author uses phrases like 'revived meme-stock frenzy', 'skyrocketed nearly 70%', and 'soared 18.3%' to describe the price movements of certain stocks, which can be considered inflammatory rhetoric as they may create an emotional response in readers. The author also quotes Jerome Powell, who is referred to as the 'Fed chief', implying that his opinions hold some authority on economic matters.
    • ]The Dow Jones industrial average and other major indexes rose to end Tuesday's session on the heels of hot inflation data and reassuring comments from Federal Reserve Chairman Jerome Powell.[
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Fed Chair Powell says inflation has been higher than thought, expects rates to hold steady

CNBC News Jeff Cox Tuesday, 14 May 2024 14:55
  • Unique Points
    • Federal Reserve Chair Jerome Powell reiterated that inflation is falling more slowly than expected and will keep the central bank on hold for an extended period.
    • Federal Reserve Chair Jerome Powell noted that the rapid disinflation that happened in 2023 has slowed considerably this year and caused a rethink of where policy is headed.
    • Inflation readings were higher than expected, indicating the need for patience and letting restrictive policy do its work.
    • Powell expects inflation to come down through the year but hasn’t happened yet.
  • Accuracy
    • Powell expects inflation to come down through the year but hasn’t happened yet.
    • Discouraging inflation data was released, with the producer price index rising a higher-than-expected 0.5% in April due to a surge in services prices.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Fed's Powell says high interest rates may 'take longer than expected' to lower inflation

USA Today Tuesday, 14 May 2024 00:00
  • Unique Points
    • Federal Reserve Chair Jerome Powell expressed that it might take longer than expected for high interest rates to lower inflation.
    • In March, the Fed’s preferred measure of annual inflation overall rose from 2.5% to 2.7% and core reading held steady at 2.8%.
  • Accuracy
    • Fed Chair Powell deemed a rate hike unlikely and called a hold on rates a strong possibility.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

92%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Fed’s Powell is unfazed by the latest hot inflation reading

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Elisabeth Buchwald Tuesday, 14 May 2024 17:13
  • Unique Points
    • Federal Reserve Chair Jerome Powell is unfazed by the latest hot inflation reading.
    • Wholesale inflation data jumped to its highest rate in a year.
    • Consumer prices rose to 3.5% on an annual basis from 3.2% in February.
    • The Producer Price Index, which measures the change in prices that manufacturers pay to suppliers, rose 0.5%.
  • Accuracy
    • Inflation readings were higher than expected, indicating the need for patience and letting restrictive policy do its work.
    • Powell expects inflation to come down through the year but hasn’t happened yet.
  • Deception (80%)
    The author does not make any clear-cut deceptive statements in this article. However, there are some instances of selective reporting and emotional manipulation. The author quotes Powell saying 'I wouldn't call it hot, I would call it sort of mixed.' But later in the article, the author refers to the same data as 'hotter-than-expected inflation.' This is an example of selective reporting. Additionally, the author states that 'Most Fed officials share Powell’s concerns that inflation could prove to be more persistent than anticipated,' implying a sense of urgency and fear. However, there is no evidence in the article to suggest that all Fed officials hold this view or that they are particularly worried.
    • The author implies a sense of urgency and fear among Fed officials when there is no evidence to suggest that all Fed officials hold this view or that they are particularly worried.
    • The author refers to the same data as 'hotter-than-expected inflation' after quoting Powell saying 'I wouldn’t call it hot, I would call it sort of mixed.'
  • Fallacies (85%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

77%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Are US interest rates high enough to beat inflation? The Fed will take its time to find out

The Associated Press News Monday, 13 May 2024 07:00
  • Unique Points
    • Federal Reserve officials expect sharp interest rate hikes to take longer than expected to bring down inflation
    • Many Americans have paid down debt during the pandemic era, allowing them to weather higher interest rates
  • Accuracy
    • Fed Chair Jerome Powell is uncertain about an interest rate increase
    • Dallas Federal Reserve President Lorie Logan suggests it's too early to think about cutting rates
  • Deception (30%)
    The article makes several statements that imply the impact of interest rate hikes on consumers and the economy is less than what economic textbooks suggest. This is an example of selective reporting as it only reports details that support the author's position. The author also uses quotes from Federal Reserve officials to reinforce this idea, but does not provide any counter-arguments or evidence to challenge this perspective.
    • If that’s true, and I think there’s some truth to that, then it may take longer for the Fed’s rate hikes to be fully felt by the housing market and by the economy more broadly.
    • Americans as a whole, for example, aren’t spending much more of their incomes on interest payments than they were a few years ago... That means higher rates may not be doing much to limit many Americans’ spending, or cool inflation.
    • What you have right now is a situation where these high rates aren’t generating more braking power on the economy... That would suggest that they either need to stay high for longer or maybe even higher for longer, meaning rate hikes might come into the conversation.
  • Fallacies (80%)
    The article contains several instances of the 'Appeal to Authority' fallacy. The author quotes several Federal Reserve officials and economists expressing their opinions on the effectiveness of interest rate hikes in reducing inflation. While these opinions are valid to report on, they do not necessarily make the statements true or free from fallacies. The fact that some experts believe higher rates may not be having as much impact as expected does not mean it is a fact.
    • ]The sharp interest rate hikes of the past two years will likely take longer than previously expected to bring down inflation, several Federal Reserve officials have said in recent comments[
    • A major concern expressed by both Fed policymakers and some economists is that higher borrowing costs aren't having as much of an impact as economics textbooks would suggest.
    • Joseph Lupton, global economist at J.P. Morgan, said 'What you have right now is a situation where these high rates aren't generating more braking power on the economy.'
    • Gennadiy Goldberg, an economist at TD Securities, said 'The Fed’s telling you hikes are not quite as on the table as the market was expecting.'
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication