sasirin pamai
My previous take on the Federal Open Market Committee [FOMC] meeting was titled "The Fed's Job Just Got Tougher," which alluded to maintaining the need for maintaining a balancing act at a time when inflation was forecast to be
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A Potential Fed Rate Cut Isn't That Significant Now
Summary
- The highlight of the latest FOMC statement is its concern about economic growth, even as it stays alert to higher inflation.
- While this suggests that the Fed could be getting closer to a rate cut, four key data points in the lead up to next month's meeting will be critical.
- In any case, it doesn't appear that a rate cut is imminent, and the stock markets appear to have macroeconomic risks from tariffs more on their mind.
- It follows that the markets are more likely to respond to trade policy and its impacts for now. At least until they bleed firmly into real economic data.
Manika is a macroeconomist with over 20 years of experience in industries including investment management, stock broking, investment banking. She also runs the profile Long Term Tips [LTT], which focuses on the generational opportunity in the green economy. Her investing group, Green Growth Giants, takes the theme a step further from LTT with a deeper dive into opportunities presented by the segment.
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