Recession

Fed chief warns of a balancing act between keeping rates high and cutting them prematurely.

‘Inflation and interest rates may stay higher than the market expects,’ the JPMorgan Chase CEO warned.

The number adds to other labor market data, signaling labor market softening.

Fed policymakers ‘certainly don’t want to cause a recession when it’s unnecessary—that’s the balancing act,’ Ms. Yellen said.

He singled out rising unemployment claims, increases in debt delinquency rates, and what seems to be cooling in consumer spending.

This year marks a sluggish recovery for the UK economy, which entered technical recession after two consecutive months of negative growth at the end of 2023.

The Minneapolis Federal Reserve chief said that policymakers need to see ‘a lot’ more data showing inflation is trending down before an interest rate cut.

‘I’m not ruling out potential interest-rate increases from here,’ Minneapolis Federal Reserve President Neel Kashkari said.

Chancellor Jeremy Hunt declared the economy is ’returning to full health' after GDP expanded by 0.6 percent in the first quarter.

Over the next six months, it is estimated that fewer American consumers plan on buying homes or big-ticket appliances.

‘Deficits which basically aren’t going to go away as far as the eye can see,’ JPMorgan CEO Jamie Dimon said, while warning of stagflation.

While the recent job numbers ‘look shiny from a distance,’ economic forecaster Sean Snaith said that ’there’s a little bit of tarnish.’

‘There seems to be a large number of persistent inflationary pressures, which may likely continue,’ Mr. Dimon wrote.

‘Beware of higher rates and recession,’ he said.

But what impact will higher inflation have on interest rates moving forward?