The tensions between the US Federal Reserve Board’s monetary policy settings and financial market expectations have been left unresolved by Wednesday’s Open Market Committee meeting. If anything, they’ve been heightened by a trickle of defections from the committee’s still ultra-dovish majority.
The Fed, as expected, left US official interest rates on hold and, via a solid majority of the committee’s members, signalled that it expects them to stay there until at least 2024.
That’s despite a sharp increase in optimism among the members that was reflected in changes to their forecasts for unemployment and economic growth since December. Read more…..
Chart of the Day
Warren Buffett shares his thoughts on the history of the U.S. economy during Berkshire Hathaway’s 2020 annual shareholder meeting.