Fed Holds Steady On Rates, Peter Schiff Takes On Jerome Powell, Elon Musk's Dig At Jim Cramer And More: This Week In Economics

This week was an interesting one in the world of finance, with mixed signals from the Federal Reserve and several economists making waves with their opinions. The key highlight is the seemingly wavering stance on interest rate cuts, which has sparked debates among financial pundits. Let’s delve into the top stories of the week.

Peter Schiff’s Take on Jerome Powell’s Rate Cut Reversals

Renowned economist Peter Schiff heavily criticized Federal Reserve Chair Jerome Powell for his apparent shift in stance on interest rate reductions. Schiff pointed out that while in November, Powell stated that rate cuts weren’t on the cards, the latest conference tells a different story. It seems like the FOMC members have been contemplating rate reductions for some time. Read the full article here.

Fed Holds Steady on Rates

In a widely anticipated move, the Federal Reserve declared its decision to hold the federal funds rate target range at 5.25%-5.5%. This decision marks the third consecutive meeting where rates have been held steady, signaling an end to the rate-hiking cycle that began in March 2022. Read the full article here.

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Larry Summers on Fed’s Damage

Former Treasury Secretary Larry Summers expressed his reservations about the Federal Reserve’s hint towards a potential soft-landing. He believes it’s too soon to conclude that we’ve landed softly, as several underlying inflation measures are still above 2%. Read the full article here.

Elon Musk’s Dig at Jim Cramer

Elon Musk, CEO of Tesla Inc., took a swipe at CNBC's Jim Cramer, calling his prediction that the Fed action won’t lead to a recession “alarming.” This followed after Cramer dismissed Wall Street’s concerns over the Fed’s actions. Read the full article here.

Mohamed El-Erian’s Take on America’s Eroding Leadership

Economist Mohamed El-Erian expressed concerns over the Western-led global economic order, which he said had a poor 2023. He attributed this to internal stress rather than the emergence of an alternative order led by China. Read the full article here.

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