Phil Grossfield's Blog


Volcanoes & The Fed

Volcanos.  Have you ever seen one up close?  A few years ago I took my family on a helicopter tour to see Pu’u ‘O’o in Kilauea’s eastern rift zone and it was one of the most thrilling things I’ve ever done. It was smoldering and you could peer down deep into the cone, but the lava wasn’t spewing like the recent volcano in Mauna Loa. To see a live cam of the active Mauna Loa eruption in Hawaii, click here or click the picture to the right… 

Clarification – Fed Rate Will Likely Rise Again In December.  In last week’s post I reported that the Fed said inflation is still too high and a 50-basis point rate hike is in the cards for December. I received some questions about that so here is some clarification…  If you were unaware, Fed Chair Jerome Powell, shown to the right, was nominated by Trump in 2017 and again by Biden in 2022.  Basically he said last week that another rate hike was coming, but that it would be reduced from 75 points (like recent hikes) to just 50 points. So, although that tells me the Fed still thinks inflation is too high, it also implies things are getting better, wouldn’t you agree?

Fed Chair Jerome Powell

Fed Chair Jerome Powell

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