Moderately above 2 inflation, moderately is what it says in the statement but does not define exactly what moderately means. There are two centers to this action, Robert Kaplan wants to see the statement to the way it was pretty wants to statement to read the economy or stance will remain the same until the economy has weathered the storm and the economic storm we have here. Well cash on the other side dissented because he wants more dovish language in this. On implement rates, statistics are very interesting here. They have reduced now the planet rates rates and estimation of this year to 7. 6 by the end of 2020 grid that is down from 9. 3 from their june projection and then also 5. 5 from on a plummet rates in 2021, 4. 6 and 2022 and 4 in 2023. The real gdp prediction cut in half for the losses they are paired they are now saying its a loss of 3. 7 at the end of this year with a bounce back of 4 next year. The inflation, fed estimates that pce inflation is 1. 2 this year up from 1. 7
That broadly speaking if we dont get that, there would certainly be Downside Risks certainly through the channel i mentioned. Thank you cnn. Thanks for taking my question chairman powell, give us an update to the policy framework and repeated calls for this and this event, is the fed open to other parts of the economy such as income inequality and Affordable Housing we monitor everything we think is important in the u. S. Economy. In a broad sense, all of it goes into thinking about Monetary Policy you mentioned inequality so disparities in income and Financial Wellbeing demographic and racial categories, something we monitor carefully, inequality, which i would point to its a multifaceted thing, stagnation of nat the lower end of the income and lower mobility those are things that hold back our economy. They are the thing is we dont really have the tools to address those. We have Interest Rates and Bank Supervision and Financial Stability policy and things like that, but we cant get a
Investors are back on and betting that stimulus is off and their favorite trade is back in. They, amazon, facebook, are all helping the s p 500 higher today, having held it back earlier this month. Stimulus is not just key to the Value Investor right now. Fed chair jay powell and treasury secretary Steven Mnuchin making the case today for more stimulus. It looks as though the base case is no additional fiscal support. That is why we are suddenly seeing the rotation back into big tech and byebye any value investing. Joe yes. The prospect was already looking dicey for fiscal stimulus. With the new fight in d. C. Over the vacancy on the supreme court, that reduces the odds. But even setting aside the market question, we hear from fed chair powell that to get a robust recovery, we need more stimulus. It was expected by the fed we would have it. Bloomberg economics is projecting that gdp growth will be 5 slower than it would have been in q4 in the absence of stimulus. Again, rotation, value
But we begin with what we think are the three most important things investors should be thinking right now. The u. S. Stock market plunged this past thursday and swung wildly on friday. Was it just a hiccup or a sign to take profits . Big banks are weathering the economic downturn better than feared. Why its time to size up their shares. And billionaire Warren Buffett just went on a shopping spree for stocks in japan. How u. S. Investors can follow his lead. On the barrons roundtable, my colleague, ben levisohn, carlton english and al root. Ben, the stock market actually fell late this past week. I had forgotten it can do that sort of thing. What happened and how worried should i be . Well, ask three wall street strategists, and youre going to get at least five different answers about why stocks fell. But really this had to happen. Stocks just had an amazing august led by tech stocks. They just kept going up and up and up, and they started september the same way. And it needed a cleans
Are the three most important things investors should be thinking right now. The u. S. Stock market plunged this past thursday and swung wildly on friday. Was it just a hiccup or a sign to take profits . Big banks are weathering the economic downturn better than feared. Why its time to size up their shares. And billionaire Warren Buffett just went on a shopping spree for stocks in japan. How u. S. Investors can follow his lead. On the barrons roundtable, my colleague, ben levisohn, carlton english and al root. Ben, the stock market actually fell late this past week. I had forgotten it can do that sort of thing. What happened and how worried should i be . Well, ask three wall street strategists, and youre going to get at least five different answers about why stocks fell. But really this had to happen. Stocks just had an amazing august led by tech stocks. They just kept going up and up and up, and they started september the same way. And it needed a cleansing. Stocks had to drop. And so