logo
episode-header-image
Jul 2022
28m 41s

How Expecting Inflation Can Actually Cre...

The New York Times
About this episode

To fight historic levels of inflation, the Federal Reserve this week, once again, raised interest rates, its most powerful weapon against rising prices.

The move was intended to slow demand, but there was also a psychological factor: If consumers become convinced that inflation is a permanent feature of the economy, that might become a self-fulfilling prophecy.

Guest: Jeanna Smialek, a correspondent covering the Federal Reserve and the economy for The New York Times.

Want more from The Daily? For one big idea on the news each week from our team, subscribe to our newsletter

Background reading: 

For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday. 

Up next
Yesterday
Trump’s Top Aides Spread the Epstein Conspiracy. Now They Are Trying to Kill It.
For months, President Trump and Attorney General Pam Bondi suggested that they would expose the hidden, potentially sinister truth about Jeffrey Epstein’s death in 2019.But over the past few days, the Trump administrationWhite House decided to shut down has poured cold water on t ... Show More
21m 47s
Jul 8
A Love Letter to Camp Mystic
On Monday evening, the death toll from the flooding in Central Texas rose past 100. A single place accounted for 27 of those deaths: Camp Mystic, a century-old Christian summer camp for girls.Erin Paisan, who attended Camp Mystic, explains what the place meant to generations of g ... Show More
25m 9s
Jul 7
A Dark Moment for Journalism — and Devastation in Texas
Last week, when Paramount, the parent company of CBS News, announced a $16 million settlement with President Trump over editing of a segment of “60 Minutes,” many of the network’s journalists were furious.The deal also raised questions about the independence of CBS’s journalism, ... Show More
34m 15s
Recommended Episodes
Jun 2024
Is the Fed Thinking About Inflation All Wrong?
For over a decade, America’s central bank has had an inflation target of 2%. On Wednesday, the Federal Reserve announced that it would keep its main interest rate unchanged in order to try and get inflation to that magic number. But what if the Fed is thinking about inflation all ... Show More
17m 3s
Jun 2023
Money Talks: What happens if inflation sticks?
Over the past two years, inflation has been full of surprises. Central bankers are now facing up to the very real possibility that bringing sticky inflation down to their 2% targets could bring deep economic pain. Some analysts are starting to ask whether they might be tempted to ... Show More
40m 55s
Jun 2023
Money Talks: What happens if inflation sticks?
Over the past two years, inflation has been full of surprises. Central bankers are now facing up to the very real possibility that bringing sticky inflation down to their 2% targets could bring deep economic pain. Some analysts are starting to ask whether they might be tempted to ... Show More
40m 55s
Jan 2022
Why everything is so expensive right now
Inflation has hit a 40-year high in the U.S., driving up the cost of everything from groceries to housing. As the Fed prepares to raise interest rates, here’s what to watch out for. Read more: In December, inflation hit a staggering 7 percent. That’s far above the Federal Reserve ... Show More
19m 22s
Feb 2024
All eyes on US inflation! | MarketTalk: What’s up today? | Swissquote
The week started on a positive note on this side of the Atlantic Ocean, and on a mixed note on the American side. Federal Reserve’s (Fed) Michelle Bowman said that the rates are in a good place to keep pressure on inflation and that there is no need to ease rates soon. Likewise, ... Show More
10m 16s
Sep 2022
Inflation nation: The Fed raises rates, again
America’s Federal Reserve made its third straight 0.75% interest-rate hike, with Jerome Powell, the Fed’s chair, warning that more hikes would follow. But with inflation still high, and labour markets still tight, is the Fed doing all it can? A new report suggests that forced lab ... Show More
23m 39s
Sep 2022
Inflation nation: The Fed raises rates, again
America’s Federal Reserve made its third straight 0.75% interest-rate hike, with Jerome Powell, the Fed’s chair, warning that more hikes would follow. But with inflation still high, and labour markets still tight, is the Fed doing all it can? A new report suggests that forced lab ... Show More
23m 39s