The Federal Reserve’s policy meeting this week yielded more questions than answers for the market to digest. As expected, rates were kept unchanged for the fourth consecutive meeting, leaving the federal funds rate at 4.25-4.50 percent. Also, as expected, the median rate forecast of the 19 members of the policy-setting committee remained unchanged from March,…
The Federal Reserve has long insisted that its policy decisions are data dependent, not forecast dependent. For the most part, the mix of data since it paused the rate-cutting campaign in January has justified that strategy. The economy has held up well, with unemployment hovering around historical lows, at 4.2 percent, while inflation has remained…
It may be the calm before the storm, but the markets are heaving a big sigh of relief that the chaotic tariff policy, heightened uncertainty and downbeat household confidence have yet to do significant damage to the job market. True, job growth is slowing, which is to be expected for a number of reasons. An…