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
The American Society of Farm Managers and Rural Appraisers shares an update on commodity prices and farmland trends in Nebraska and South Dakota.
Research shows a small number of companies account for much of the nation’s ammonia production capacity.
Senate Western Caucus Chairman Sen. Cynthia Lummis of Wyoming joins us to discuss public lands grazing, New World screwworm response efforts, Western Caucus priorities, and policy supporting the future of rural America.
Home to Reelfoot Lake, Lake County combines fertile farmland with one of Tennessee’s top outdoor destinations.
