ACTV - January FOMC Meeting Review: The 'Fed-Amental' Attribution Error
2024-01-31 17:09:27 ET
Summary
- The Federal Reserve kept rates steady and maintained a hawkish stance toward inflation while acknowledging an outstanding economy and progress in vanquishing inflationary pressure.
- Expectations for rate cuts in March were dampened by a change in statement language and Powell's comments in the press conference.
- The Fed is cautious about cutting rates too soon and reigniting inflation, but some experts argue that a policy error in the other direction may be building.
- Overall, I argue that the unwinding of the pandemic will continue to allow inflation to move toward the Fed's target concurrently with strong economic growth and low unemployment: The fabled soft landing.
January FOMC Meeting Review: The 'Fed-Amental' Attribution ErrorThere is no reason for Powell to give up strategic ambiguity on rate cuts. - Bob Pisani (On CNBC today).