Facts Matter

The Federal Reserve lowered its Federal funds rate target 25 basis points to 2 percent last week, while issuing a more even-handed policy statement that provides room for the central bank to pause and allow easing to impact the economy (smart move). The Fed acknowledged that economic growth is likely to remain weak over the next few quarters. The Fed Chairman remains worried about inflation, but he expects inflation to moderate with future monetary policy changes. Importantly, the FOMC altered key language in its policy paragraph, indicating that “further ease is no longer imminent.”
Continue reading ‘Shift in Fundamentals and Policy Changes’