Expanding the Legacy
Expanding the Legacy
The US Federal Reserve celebrated the death of inflation with a bold interest rate cut. As the Federal Open Market Committee mulled its next move during a highly-anticipated meeting yesterday, its twelve members just hoped, and perhaps even prayed (this is, after all, America), that the reports of inflation’s death are not ‘greatly exaggerated’. The benchmark federal fund rate receded to five percent.
Markets may have disliked what Jay Powell had to say before; however, what he does now proves a bullseye hit – pardon the pun. The US Federal Reserve surprised no one when, at the end of a two-day policy meeting, its Open Market Committee yesterday unveiled a 0.5 percentage point rise in the federal fund rate. It was the first such robust hike in 22 years and the first back-to-back rate rise increase 2006. Usually, the central bank moves in 25 basis point increments.
He spoke only three times publicly in his new job, and three times the markets tanked. More disconcertingly, he also flip-flopped during two key speeches on Capitol Hill, seamlessly moving from monetary hawk to dove within the space of a few days. The new chairman of the US Federal Reserve,...
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