Premier Wealth Timely Topics
In the United States, the inflation target is 2.0% for the Personal Consumption Expenditure Price Index over the long run. Back in the 70s and 80s, the Fed did not have an inflation target, and monetary policy was conducted in a more, say, discretionary manner than today. However, currently the Fed must stick to its target and do whatever it needs to bring inflation down to that target. If it needs to keep interest rates higher for longer, it will do so. With the Fed meeting next week, this will remain top of mind when determining their outlook going forward. While the market has priced in a cut of 25 basis points (0.25%), there are increasing odds of a 50 basis point cut (0.50%) which many believe is necessary as the economy continues to slow. Please see below for some recent and relevant headlines.
