The Fed and the Fight for 2%

Source: Libertarian Institute
by Joseph Solis-Mullen

“Last week, Jerome Powell & Co. met to issue an immediate decision regarding the status of the federal funds rate for March, and to provide some insight into the trajectory of monetary policy for the rest of 2024 and into 2025. As with the past few inflation readings, with January, February, and March showing inflation ticking up and underlying inflationary pressures remaining strong, talk continues to surround the Fed’s ‘level of confidence’ whether the time is right to start cutting rates. That the Fed will cut rates is still taken to be a given, but Powell held off again last week, leaving the rate between 5.25% and 5.5%, and the new, accompanying dot plot Fed officials released shows that central banks are now anticipating fewer rate cuts than had been publicly predicted as little as three months ago.” (03/26/24)