TTT - The Fed: Patient Amid Rising Uncertainty
Following this week's meeting of the Federal Open Market Committee ((FOMC)), the Fed issued a statement that more forcefully signaled its intention to be cautious in the face of a more uncertain outlook. Policymakers also signaled that they view the current stance of monetary policy as more or less neutral. Therefore, investors should expect the Fed to keep rates steady, for now.
We think the Fed is right to be cautious in the face of rising global economic risks along with uncertainties surrounding politics and policy. Amid only modest inflationary pressures and financial imbalances, a