ACTV - The Federal Reserve's Worry List: 5 Concerns
2024-02-01 01:29:06 ET
Summary
- Because the Fed was expected to lower interest rates today, stock markets skyrocketed. But the Fed decided to leave rates unchanged, so the markets reacted negatively.
- Fed concerns include potential inflation, excess money in the economy from COVID spending, and the ballooning Fed balance sheet.
- The Fed is facing a dilemma with no clear way out, similar to the roundabout in National Lampoon's European Vacation.
Today was the day that most believed the Fed would pivot, lowering interest rates by reinstating Quantitative Easing ((QE)). Recent stock market gains reflect this belief....
The Federal Reserve's Worry List: 5 Concerns