On The Radar

On The Radar

March 28, 2022
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What did the Fed decide at their recent monetary policy meeting?

This past week, the Fed took a very hawkish stance. They have now come to realize that inflation will not self-correct. So, to get inflation back toward its target rate of 2.0%, the Fed must move the federal funds rate above what they view as a neutral rate—the hypothetical rate that neither stimulates nor constricts economic growth. This should slow the economic growth rate to bring inflation back under control.