Strong U.S. economic growth for the past few years was dampened by the first quarter 2024 results. U.S. gross domestic product (GDP) dipped to an annualized rate of 1.6% relative to the robust 3.4% rate posted in the fourth quarter of 2023. While those results seem to align with the Federal Reserve's contractionary monetary policy, the inflation results do not. Inflation is once again moving higher and farther away from the Fed's 2% target rate.
Tag: Federal Reserve
The Fed Probably Won’t Cut Rates in March. Here’s What That Means for Markets (Macro News for February 10, 2024 – February 16, 2024)
Investors expect the Federal Reserve to maintain interest rates at current levels coming out of the March 2024 meeting. The strong January jobs report makes it almost a certainty that the Fed will not begin lowering rates in March. Now experts believe the Fed will wait until May or June 2024 to begin lowering interest rates.
The Fed’s Latest Balancing Act: Cutting Rates Too Soon Vs. Waiting Too Long (Macro News for January 13, 2024 – January 19, 2024)
The Federal Reserve's contractionary monetary policy of the past year and a half may have accomplished what it was intended to do. The higher interest rates pushed inflation from 9.1% posted in June 2022 to 3.4% in December 2023. However, the Fed's inflation target is 2% and it could keep rates unchanged until inflation approaches that goal.
Fed Chair Powell: Too Early to Say When to Expect Rate Cuts (Macro News for December 2, 2023 – December 8, 2023)
Federal Reserve Chair Jerome Powell stated that the Fed would be cautious and did not intend to move too fast with regard to changing interest rates. The Fed will meet in two weeks to discuss its next actions but most experts believe the Fed will leave interest rates unchanged at the December 2023 meeting. Interest rates are currently at a 22-year high.
Pearson Economic News 