NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Creighton University economist Ernie Goss said that Jerome Powell made it clear he doesn't want to talk about the idea of expecting more than 2% growth on a regular basis.
"When the Fed Chairman was asked that question last press conference, he got heated on that one," Goss said. "They hate, hate for you and I out there to change what we expect in terms of inflation. That would just mean that you and I, when we go to our employers and ask for a raise, we'll be pushing for more and more raises and that will just push inflation up even more. They don't want to even talk about that right now."
The Fed is trying to slow its rate increases to get to a so-called soft landing. Goss isn't buying it.
"I'm on the side of a rough landing," Goss said. "The Fed's trying to bring the economy down to a soft landing, I don't think that's going to happen. It's going to be what they call a rough landing. Is it going to be a crash landing? I don't think so. Never has a recession ever been telegraphed and predicted by more individuals, more economists, more business individuals, more politicians. We're all looking for it. As a result, I'm not so sure we're going to get it. It's going to be slower growth, no doubt about it."
China loosening its COVID lockdowns and going through the widespread illness it is right now is not good news for the American economy.
"That's especially for the agricultural sector going forward," Goss said. "They are obviously not buying as much beef from this part of the country, soybeans, pork, more pork and soybeans than other factors, but that is where we're going to see it. That is another factor slowing the economy. They found out that the lockdown did not work. We found it out. I guess they weren't listening to our radio stations or watching our TV channels."
Powell has indicated that their key short-term rate will likely reach a range of 5% to 5.25% by the end of 2023.