pull down to refresh
43 sats \ 0 replies \ @denlillaapan 27 Nov \ on: Fed’s preferred inflation gauge rises to 2.3% annually, meeting expectations econ
because it's not rising...? It's hovering slightly above 2:
And rule of thumb is that monetary policy NOW impacts the economy in ~6 to 12 months. So they're skating to where they think the puck will be.
Another reason: when inflation is so close their target, unemployment becomes psychologically and practically more important for them. Anticipations of recession gotta be counter with lower rates.
Welcome to discretionary monetary policy, basically.