I always thought raising Interest Rates was a tactic to stall Inflation.
Now I hear the Inflation is not an issue but a booming Economy is.
Obama skates on low Interest Rates for eight years and now that the Country is getting back on its feet the Fed looks like it’s trying to push back. Politics, pure and simple.
Interesting times.
I think the big issue yesterday was Powell saying he’d continue $600 billion per year roll off of the balance sheet. In fact saying that was on autopilot. So even if they pause or cut rates, that continues. Paying back for the Quantitive easing with some tightening. Pretty sure this is the first reduction of the Fed balance sheet in my lifetime.