program and to suspend interest rates multiple times? we don t get into their level of knitting to the precision that your question suggests. but i will say the following, that when it comes to full employment, and stable es prices that is the task of the federal reserve, and we have great faith in particularly the members that we have recently nominated for repeat terms. so that is one part. secondly, one of things that i do on my job here as the council of economic advisory is that i track every forecast that we have. and even with the fed rate hikes penciled in, it is going to decline, and we should be back to full employment by the end of the year. so under this scenario, we should have a tight market, and we are not sitting idly by, but we are doing everything to ensure that it is going to
with inflation and the fabout t federal reserve s plan to fight inflation. this comes after u.s. stocks suffered their worst week since march 2020. the nasdaq sis on track for wort month since 2008 and worst january on record. so this is really about how the fed has telegraphed that they re going to end their bond buying stimulus program. the program was really bullish for the stock market. essentially forced investors to bet on stocks. the fed is also pencilled in three interest rate hikes, possibly starting as soon as march, and a lot of people on wall street think that s not going to be enough, they have to raise interest rates four or five times, maybe six or seven but you have to remember that all the support from the fed has been so positive for the stock market. so as it goes away, it maykes sense for the market to recalibrate but jim and biana,
spike of that kind since that metric began a decade ago. consumer prices at a 39-year high. talking about double-digit price increases for everything from new cars and furniture to used cars up more than 30% from a year ago. now the good news is the fed knows how to fight inflation. it can tap the brakes on the economy. in this case, that means it can unwind the bond buying stimulus program that it launched in march of 2020 and also eventually raise interest rates off of rock bottom levels. and that would raise the cost of borrowing for car loans and mortgages and credit cards. but, kate, the bad news is, the harder the fed has to hit the brakes, the greater the chance that it causes some sort of an accident, either in the economy or in financial markets or in both. so that is the very difficult balancing act facing the fed today. absolutely. good to see you, matt. coming up for us, president biden is in kentucky to tour the catastrophic damage from the tornadoes there. we ll take
the housing market is hot. americans are shopping like crazy. all of that right now is being eclipsed by sticker shock. you mentioned the federal reserve meeting today and tomorrow, how do they take these numbers, friday s numbers, these new numbers into context. hopefully they take it sitting down. these are crazy numbers. we talk a lot about the political implications here, but really, this is the job of the fed. the fed is supposed to be maintaining price stability and anything but stable. what we should hear from the fed under 24 hours is one, they re going to try to show they re going to take inflation seriously. that means they could start to unwind bond buying stimulus program faster. they could signal that they could raise interest rates, the question is whether they can do all of this without tipping the economy into a recession or at least a slow down, and we don t know yet. thank you. thank you, matt. the house is expected to start debate soon on whether to hold do
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