Rich Dad Poor Dad author Robert Kiyosaki tells Cavuto: Coast to Coast that he prefers to invest in “material metals” over “dollars” because he “doesn’t trust the government” as stocks fall on renewed banking worries .
President Biden’s nominee for the Federal Reserve on Friday lamented that inflation remained high and that the governing body had made “little progress” toward its 2 percent target.
“The bad news is that there has been little progress on core inflation,” said Philip Jefferson, Biden’s pick for the second-highest post on the Fed’s seven-member board, during a policy update speech, adding that the inflation news so far has been progress had been “mixed”.
The comments follow a report this week that showed inflation had eased slightly but the consumer price index had fallen more than the Fed’s preferred measure, which will be updated on May 26.
Jefferson pointed to the “disinflation” of core commodities, which excludes more volatile prices like food and energy: Disinflation has been slower, with the only noticeable change being in used car prices, which fell “unexpectedly” in March.
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dr Philip Nathan Jefferson of North Carolina, nominee to serve on the Board of Governors of the Federal Reserve System, answers a question for US Senator Raphael Warnock (D-GA) during a Senate Committee on Banking, Housing and City Affairs. … (Portal/Ken Cedeno/Pool / Portal photos)
“The imbalances between supply and demand in the goods sector appear to be resolving less quickly than expected. Core inflation in housing services … has risen sharply in recent years as demand in the housing sector has changed significantly during the pandemic,” Jefferson explained. “Recent monthly readings have started to slow down, although this is not yet evident in the 12-month changes.”
Jefferson said in October 2022 the bank had acted boldly but warned the measures could take “some time” to really have an impact. —
WARNING – MORE RATE RISE WILL HARM SMALL MEDIUM BANKS AND BUSINESSES: ROBERT KAPLAN
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 134.10 | -1.95 | -1.43% |
| MS | MORGAN STANLEY | 82.39 | -0.26 | -0.31% |
| WFC | Wells Fargo & Co. | 37.49 | -0.84 | -2.19% |
| B.A.C | BANK OF AMERICA CORP. | 09/27 | -0.30 | -1.10% |
His potential new post would give him greater leverage over interest rate policy and bring him into closer alignment with Federal Reserve Chair Jerome Powell.
Jefferson took solace in the jobs numbers, which “point to a strong job market amid an improving labor supply,” with prime-age participation “exceeding pre-pandemic levels.”
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Federal Reserve Governor Michelle Bowman delivers her first public remarks as Fed policymaker at a conference of the American Bankers Association in San Diego, California, on February 11, 2019. Bowman said on Monday she expects interest rates to hold… (Portal)
The Fed’s biggest concern is the closure of three banks, which has weighed on the sector, Jefferson said. However, he stressed that the US banking system is “solid and resilient”. He said the closures are likely to have “a slight dampening effect” on the economy and that it was “too early to say” to predict the full impact.
These closures worried many banks, and they responded by cutting lending, which could slow the economy and lessen the need for the Fed to raise rates again.
Jefferson’s Fed colleague Michelle Bowman warned on Friday that the only reason to consider raising interest rates is if inflation remains high and the labor market is “squeezed.”
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She argued that recent inflation and employment reports “did not provide consistent evidence that inflation was on a downtrend.”
The Associated Press contributed to this report.