As the Trump Administration assumed office, markets not only had priced ‘goldilocks’ but looked to be embracing a euphoric scenario. Inflation was in retreat; the Fed was cutting rates; bond yields were set to decline, all of which led to ebullient equity markets.
To many observers, it appeared that Jerome Powell’s Fed had nailed something that had eluded a number of his predecessors: he had stuck the soft landing…almost!
The Fed’s Federal Open Market Committee (FOMC) meeting on Wednesday night was therefore keenly awaited, not so much in anticipation of any rate adjustment (there was none) but more so to ascertain Fed views on the evolving economic outlook.
The Fed’s policy rate “dot plot” maintained the same median expectation as in December for just two 25 basis point (bp) policy rate cuts for 2025.
Click here to read Stephen Miller’s full opinion piece.
