With Inflation Below 2 Percent and a Soft Housing Market, Another Rate Hike Should be Off the Table, says Job Creators Network
Washington, DC (November 29, 2018) – Today’s Commerce Department report that inflation is comfortably below 2 percent shows the economy is in no danger of overheating, and that another interest rate hike this year would be unnecessary, said the Job Creators Network.
“We’ve been seeing some softening in the housing market for months, which usually precedes a slowdown. Now we’re seeing lower-than-expected inflation,” said Job Creators Network President and CEO Alfredo Ortiz. “Our own data shows that Americans are slightly less confident in the economy since the election. There is more and more evidence that another interest rate hike in December could be a serious miscalculation.”
Ortiz pointed to the Job Creators Network/ScottRasmussen.com Weekly Pulse, a weekly tracking survey measuring Americans’ confidence in the economy. The data, released this morning, shows a dip in confidence over the past three weeks.
Yesterday, Fed Chairman Jerome Powell sought to assure nervous investors that another rate hike is not cast in stone. However, he left the door open based on conditions.
“There’s more than enough evidence that the conditions do not support another interest rate hike,” said Ortiz. “This is a strong economy, but it’s certainly not overheating. In fact, there are some signs, like the housing market dip, that the Fed might have gone too far already. The Fed must refrain from doing anything to reverse the solid growth we’ve seen.”
For more information about the Job Creators Network, please visit www.jobcreatorsnetwork.com.