The US annual consumer inflation rate for the 12 months ended February 2023 stood at 6.0% YoY, according to the latest government data. In this context, the Twitter influencer conversations are centered around the Federal Reserve’s decision on the key interest rate in the upcoming Federal Open Market Committee (FOMC) meet on March 21-22.
Some influencers argue that lifting the rate is required while others suggest that pausing the rate hike can be a healthy measure, especially since the economy is already grappling with the recent crisis related to the Silicon Valley Bank (SVB), reveals the Social Media Analytics Platform of GlobalData, a leading data and analytics company.
Smitarani Tripathy, Social Media Analyst at GlobalData, says: “Twitter influencers have expressed a range of opinions on the matter of interest rates, given that inflation data remains at levels not seen in decades, which may prompt the Federal Reserve to raise interest rates.
Influencers suggest the Federal Reserve to avoid an aggressive rate hike, particularly considering the recent fallout of major banks. They suggest that the Fed should instead consider pausing or decreasing interest rates to restore confidence in the banking and financial systems, which have already been impacted by the current interest rate.”
Here are a few of the most popular influencer opinions captured by GlobalData’s Social Media Analytics Platform:
Betsey Stevenson, Professor of Economics at University of Michigan
“While many have been blaming raising interest rates for the SVB collapse, CPI is here this morning to remind us as to why the Fed had to raise rates (and why they will stay high for a while).”
Steve Matthews, U.S. Economy reporter at Bloomberg News
“The hot CPI report is likely to reinforce the need to raise interest rates further at the Fed — though the turmoil caused by the SVB failure means it’s only a 25 basis point hike on the table–and pause is option if there is more turmoil.”
Robert Reich, Co-Founder at Inequality Media
“Inflation is slowing. There’s no need to punish workers by increasing interest rates. Plus aggressive hikes contributed to the SVB collapse. The Fed must first do an appraisal of the consequences for smaller banks. Raising interest rates again would be cruel and irresponsible.
John Davi, CEO at Astoria Portfolio Advisors
“What does the Fed do? The damage is already done with the 500bps in 1 year. Our view is that the Fed should pause. But what the Fed does and what it should do are two entirely different things. The market has drastically repriced interest rate hikes per SoberLook”
Eddie Du, Individual Analyst
“Investors are betting the fallout from the failure of the Silicon Valley Bank will force the Federal Reserve to back away from further aggressive interest rate rises.”