Fed's Barr: Household balance sheets are generally strong

Fed's Barr is on the wires saying:

• Households balance sheets are generally strong
• A strong balance sheet is positive as we head into next period for the economy

The retail sales today support that idea. What does that consumer strength do for inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is the main focus for the Fed. That focus will likely keep the Fed tightening into more restrictive territory.

However there is a limit to that tightening.

Today, SF Fed's Daly said she sees terminal rate between 4.75% and 5.25%. That is above the 4.6% that the Fed projected in the September dot plot. That dot plot will be revised at the December 14 FOMC meeting.

The Fed Chair Powell has said his projections are for a higher terminal rate but did not put a number on it.

Goldman today raised their expectations. They see 50 basis points and 3x 25 basis points in 2023 taking the terminal rate to 5.25%. That is a bit higher than the markets expectations.