Takeaways from the Fed
I needed to digest this for a little bit (and have dinner). There are some issues ahead, and if the Fed were to start easing again, that'd be a serious economic problem.
Dear Reader:
The Fed didn’t cut rates today. But that’s not a surprise.
Let’s get to the key points from the Fed’s release today…
The Economy is “Strong,” but Inflation is Still a Concern
The Fed says that economic activity is solid, and the job market is stable, with low unemployment. (I dunno about that - give the economic conditions in the chart below, but they’re trying to be optimistic…)However, inflation is still above the Fed’s 2% target.
While growth continues, the Fed remains cautious about rising prices and how they could impact future policy decisions.
Interest Rates Hold Steady, But Policy Could Change
The Fed kept its benchmark interest rate unchanged at 4.25%–4.50%. Future rate decisions will depend on economic data, inflation trends, and financial risks. The Fed remains flexible and may adjust rates if new risks emerge. (Not a lot of people noticed, but investors are betting on rates hitting 2% in late 2026… that would be ugly for this economy.)
Balance Sheet Reduction is Sl…
Keep reading with a 7-day free trial
Subscribe to Me and the Money Printer to keep reading this post and get 7 days of free access to the full post archives.