Higher interest rates have taken a toll on Rural America. While most farmers would like them to come down, it is looking more and more unlikely.
Economist Ben Brown says they could inch up before they come back down:
“Given the inflation data that we’ve seen both at the consumer level and at the wholesale level the last couple of months, I have a really hard time seeing how the Fed can just maintain interest rates where they’re at—and certainly I wouldn’t remove the possibility of an interest rate hike here before May or June,” Brown said. “To look at last week’s inflation data, the Consumer Price Index came up month-over-month higher than even what the expectations are. That’s the third straight month that we’ve seen inflation come in hotter than expected, and the Producer Price Index was also up, signaling that wholesale inflation will eventually trickle down to consumer inflation as well, so I do think we’re seeing the prices increase faster than they expected. I think that’s got the Federal Reserve a little bit concerned.”
Ben Brown, Economist
This month’s inflation reports both came in hotter than expected, showing high prices remain sticky. Brown says he believes prices are still rising faster than expected, and that could lead the Fed to take action in the coming weeks.
Related Stories
RealAg Radio host Shaun Haney joins us to discuss Canada’s livestock import restrictions, producer reaction to the New World screwworm detection in Texas, and the potential implications for cross-border livestock trade.
Livestock producers should inspect animals daily, report any suspicious wounds immediately, and comply with local movement restrictions.
Producers should coordinate immediately with their CPA and legal counsel to ensure their corporate structures and operational realities are perfectly aligned before the September deadline.
Farm Bureau economist John Newton says farm income has declined every quarter for three years.
