The Forward Guidance newsletter discusses the recent FOMC meeting and how a shift in language by the Fed regarding inflation initially caused risk assets to decrease, but then increased after Chair Powell clarified that it was not a change in policy stance. The newsletter also mentions that the labor market remains balanced and solid, with no cause for concern from the Fed. Additionally, preliminary GDP growth data shows a solid economy, primarily driven by consumer consumption. While fixed investment saw a contraction, there is no major concern yet. Overall, these factors support the Fed's decision to pause rate cuts and assess the impact of previous cuts on the economy.



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