ACTV - Navigating Inflation: The FOMC's Single Mandate

2024-05-24 00:05:00 ET

Summary

• The current focus of the FOMC is on achieving the inflation mandate rather than the employment mandate.
• The FOMC is more concerned about the risk of inflation than the state of the labor market.
• Unemployment remains low and is not a major concern for the FOMC unless it rises substantially further.

By Samuel Rines

The Federal Open Market Committee is always data-dependent. But the dependency is not always the same. There are times when inflation matters more than the labor market, and times when the situation is reversed. Every regime is unique. There is never a perfect corollary to a previous experience. This time is not different....

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