NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — As it appears that the Federal Reserve will not be cutting interest rates anytime soon, it's important to note that is having a slowing effect on the Midwest economy.
"Higher interest rates are one of the factors cutting into the overall readings," said Creighton University economist Ernie Goss earlier this month prior to the latest data release this week. "Their prognostication capabilities are like everybody's, including mine, limited, it seems. In other words, they are playing a guessing game right now and that's not very comforting."
Goss said the inflation rate will determine their next action.
"How weak is the economy, how strong is the economy, is the inflation rate we're experiencing right now, is it going to stay above 3%?" Goss said.
Core inflation as reported Thursday is at 3.7% annualized, which means at the very least no cuts in rates until late in the year.
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