Budget planner book target9/25/2023 This risk is reflected in the New York Fed’s U.S. The higher the Fed is forced to raise interest rates to get inflation under control, the higher the likelihood of economic fallout at some point down the line. It may be very difficult for the FOMC to justify a pause on interest rate hikes until the jobs market cools down further. In his Jackson Hole speech, Powell said getting inflation back down to 2% will likely require “some softening in labor market conditions.” job openings hit 0.7 in July, its highest level since September 2021. has reported back-to-back months adding fewer than 200,000 jobs since the COVID-19 pandemic lockdowns in March and April of 2020. June and July represent the first time the U.S. economy added 187,000 jobs in July, missing economist estimates of 200,000. labor market is also showing signs of slowing down. Core PCE inflation, which excludes volatile food and energy prices and is the Fed’s preferred inflation measure, was up 4.2% in July, in-line with economist estimates and still well above the FOMC’s 2% long-term target.Īs prices continue to rise, the hot U.S. In addition to CPI inflation coming in below expectations, the personal consumption expenditures (PCE) price index was up 3.3% year-over-year in July, up from its 3% gain in June. In August, the Fed got mixed news in its efforts to navigate a “soft landing” for the U.S. The market is also pricing in a 59.5% chance the FOMC will cut interest rates from their current levels by May 2024. The bond market is pricing in a 44.4% chance the FOMC will raise rates by at least another 25 bps by November. “Investors still care what the Fed is going to do, but at this point given that they are either done raising rates or very close to being done raising rates, the underlying fundamentals of corporate profits are again the main focus.” “Not only is the Fed unlikely to raise rates at the next meeting, they are unlikely to raise rates again this year as long as inflation continues to remain contained.” Zaccarelli says. 20.Ĭhris Zaccarelli, chief investment officer at Independent Advisor Alliance, says each month inflation comes in below expectations, the likelihood the Fed has issued its last rate hike of the current cycle increases. Economists are expecting the FOMC to maintain interest rates at their current levels at its next meeting that concludes on Sept. In his annual speech at Jackson Hole in August, Powell said inflation is still “too high” and warned investors that “we are prepared to raise rates further.” Powell also said the combination of decelerating inflation and a solid economy will allow the Fed to “proceed carefully” at future meetings.Īt its last meeting in July, the Federal Open Market Committee (FOMC) raised interest rates by another 25 basis points (bps) to a new range of between 5.25% and 5.5%, its highest target range in 22 years. The headline CPI reading was also up just 0.2% on a monthly basis for the second consecutive month. The consumer price index gained 3.2% year-over year in July, down from peak inflation levels of 9.1% in June 2022 and below economists’ estimates of a 3.3% gain. I could go on with thousands of examples, but in the end, the truth is that money can buy you happiness.Inflation, interest rates and the labor market will likely continue to dominate Wall Street headlines in September. Want to be a world class chef? It’s money that can buy you lessons. If you want more free time for your hobby, then having enough money can enable you to take time off of work. (It’s the greed and not being satisfied with “enough” that gets people into trouble). I hate to sound callous or crude, but money can buy you what you really want. Once you have mastered your budget planning, and are using it to strategically plan your finances, you can go anywhere! Budget Planners can get you your heart’s desire, as almost everything comes back to money, or “can I afford it?” So committing yourself by buying a budget planner is a GREAT first step! Everyone knows that the first step is the hardest. Remember up above when I talked about roadmaps? A great budget planner guides you along on a journey without needing a money guru on call! It allows you to take control of your personal finances while still having a guide along!Īlso, when you start actively participating in something, it gives you a greater sense of control over “it.” Taking action puts you in the driver seat of your finances, even if you’re just filling out a budget notebook. Are formatted efficiently, so everything flows nicely together, and you know that you haven’t forgotten anything!.Keeps you engaged with budgeting (this is the most important piece!).Fun (creative outlet with stickers, pens, etc.).A budget planner works great for so many women, because the good planners…
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