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
Alan Bjerga with the National Milk Producers Federation shares how teens are helping fuel stronger demand for traditional U.S. dairy products.
Did the Kansas Court of Appeals Go Too Far in Clark v. McKee?
Corey Rosenbusch, President & CEO of The Fertilizer Institute, discusses fertilizer markets transparency efforts and the steps to ensure long-term stability for farmers and the ag economy.
Mike Wilson says years of hard work and stewardship helped transform the farm for future generations.
Farm Bureau Economist Dr. Faith Parum joins us to break down what year-round E15 passage could mean for agriculture, energy markets, and the future of renewable fuels in the United States.
A tax preparer can help identify penalty and interest charges and determine whether Form 843 should be filed.
