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Powell and the Fed Face ‘Dollar Doom Loop’ Dilemma
By Advisor Perspectives
Damned if they keep raising, damned if they don’t. Federal Reserve Chair Jerome Powell and his colleagues face a difficult choice over the next few months – and it is one that could have unpleasant ramifications whatever they decide.
The first option for the Federal Open Market Committee (FOMC) is that it continues to deliver on the current plan: Raise rates again next month and stick to the guidance of four additional rate increases by the end of 2019. This can be easily justified by the U.S. economy’s progress toward the central bank’s dual objectives of full employment and 2% inflation as Powell emphasized again in Jackson Hole.
Read more at Advisor Perspectives.
Photo: Public Domain