In the words of ‘Hans and Franz,’ characters from a Saturday Night Live skit by Dana Carvey and Kevin Nealon, Fed Chairman Jerome Powell “wants to pump … you up, America.”
Today this month’s FOMC meeting concluded, in both the statement as well as the words spoken by Chairman Powell made it emphatically clear that the Fed has no intention whatsoever to raise interest rates until 2022, or 2023.
This was made crystal clear by releasing their latest “dot plot,” which showed a unanimous decision to leave rates between zero and 25 basis points throughout 2021. It showed that the majority vote also believes the best course of action is to keep interest rates where they are in 2022 and 2023. There were only four dissenters who believe that they should raise rates in 2022 and seven dissenters who believe they should raise rates in 2023. Read more…..
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Mohamed El-Erian, president of Queens’ college at Cambridge University and Allianz chief economic advisor, joins Yahoo Finance to discuss three key elements from the Fed’s FOMC meeting in March which are; the Fed’s economic outlook on inflation, no change in policy, and a calm bond market.