Federal Reserve Monetary Policy

SOURCE www.breitbart.com
Federal Reserve officials signal they expect to cut rates three times this year but will wait for more evidence of progress on inflation. They see the economy as strong and anticipate growth, core inflation, and lower unemployment. The Fed has been cautious due to past mistakes in predicting inflation.

Key Points

  • Federal Reserve expects to cut rates three times this year
  • They are waiting for more convincing evidence of progress on inflation
  • Economy is strong with solid job gains and low unemployment

Pros

  • Federal Reserve remains vigilant about progress on inflation
  • Committee expects to cut rates three times this year
  • Economy is seen as fundamentally strong with solid job gains

Cons

  • Past mistakes in predicting inflation have made the Fed cautious
  • Projections for rate cuts have not changed despite stronger-than-expected growth