Investors are left in a tough situation after an illuminating press conference where Fed Chair Jerome Powell poured cold water on optimists.
. But he threw tepid water — if not cold water — on expectations that the US economy will avoid recession this cycle.the Fed's baseline expectation; it's merely a "plausible outcome."
At the short end of the curve, the Fed's policy rate remains restrictive. And ironically, the more inflation cools, the more restrictive the Fed's policy rate will become. That's because the so-called real policy rate is the Fed's overnight benchmark rate minus core inflation.policy rate where it currently is while inflation cools, simple math says that theAs Yahoo Finance's Myles Udland"Higher for longer" effectively means "restrictive for longer.
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