The U.S. Federal Reserve is currently “attempting something unprecedented,” as inflation in the country has dropped by a whopping 5.8% over the last two years – the largest drop since the 1980s – to stand at 2.4% in September.
According to the economics outlet Kobeissi Letter on the microblogging platform X (formerly known as Twitter), the drop is “even larger” than the decline seen during the 2008 Financial Crisis, and noted that in the past “such a drop has never been seen outside of recessions.”
The interest rate cuts notably comes after the Federal Reserve “conducted one of the most aggressive rate hike cycles in history, raising rates from near zero to 5.5% in 16 months.”
This is incredible:
US CPI inflation rate has dropped by 5.8 percentage points over the last two years, the most since the 1980s, and hit 2.4% in September.
This is an even larger 2-year decline than the one seen during the 2008 Financial Crisis.
In the past, such a drop has… pic.twitter.com/Yke3buBlVk
— The Kobeissi Letter (@KobeissiLetter) October 17, 2024
The outlet adds that core CPI inflation rose to 3.3% in September in its first rise since March 2023. As reported, a “concerning” economic indicator in the United States is currently pointing to an incoming recession after accurately predicting the last recessions over the last 75 years accurately.
Despite these metrics, JPMorgan Chase CEO Jamie Dimon is instead worrying about the global economic situation ver ongoing geopolitical threats coming from an “evil axis” that shows “that conditions are treacherous and getting worse.”
He noted that inflation is moving down and the US economy seemingly avoided a recession, although “several critical issues remain,” including “large fiscal deficits, infrastructure needs, restructuring of trade and remilitarization of the world.”
Dimon has been warning about geopolitical instability for over an year and repeatedly called it the largest threat to global economy. He has said, at the Financial Markets Quality Conference in Washington last month, that “Iran, North Korea and Russia, I think you can legitimately call them (an) evil axis.”
Featured image via Unsplash.