On Tuesday and Wednesday of this week, the Federal Reserve’s Open Market Committee (FOMC) will meet to set the rate at which banks can lend to one another. While Chairman Powell and the FOMC should be pleased with their ability to bring inflation down from its peak in June 2022, there is strong historical evidence to suggest that it would be a mistake to believe that the inflation dragon has been slayed. Currently, investors are debating whether the Fed should start to ease monetary policy with a cut in the Funds rate of one-quarter of a percentage point or a half of a percentage point.
Read Full Article »
