FOMC Update: Interest Rate Cut & Federal Reserve's Outlook


Earlier today, the Federal Reserve cut the interest rate by another 0.25 points. In this video, I share my thoughts on this FOMC meeting:

- Risks of inflation & unemployment are equal now.
- Policy is still restrictive. Absent any surprise they will keep cutting.
- But no forward guidance. No 'commitment' to future cuts. Data dependent. Opened the door for anything from a pause or faster cuts.
- If labor gets any weaker, they are ready to cut faster. If inflation gets any higher, they will pause.
- Powell believes Trump cannot fire him (not legal) and won't go if asked to.

For economic analysis, this means the Fed is now highly sensitive and likely to take either path as data comes in. This adds to uncertainty moving forward, and each economic data report will sway the market.


https://youtu.be/Y5a8Gn0hRe0

Already looking forward
to the next interest rate
setting meeting by
the #FOMC

Currently 82% chance
#InterestRates will stay
on hold AGAIN.

Inflation is still clearly an
issue with risk of higher
#Inflation ahead as a result
of Trump protectionist policies.

#DiamondHands