The Federal Reserve wrapped up a two-day policy meeting Wednesday, delivering pretty much what the market expected and no major surprises from Chair Jerome Powell’s news conference. Here are five things worth remembering:
“The Fed delivered a rate cut, but it arrived in a somewhat hawkish package. The Fed hasn’t shut the door on further cuts, but Chair Powell has raised the bar for further action. We expect the economy to grow at a solid pace next year, but it must be accompanied by job gains. The next round of jobs data may point to the exact opposite.” — Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.
“It’s détente at the Fed for now. But a shakeup is coming with the new Fed Chair in May.” — Heather Long, chief economist at Navy Federal Credit Union.
“Perspectively speaking, we saw this meeting as an affirmation from the Fed of what investors were already thinking. Labor conditions are not worsening, growth has accelerated and inflation has steadied for now. To put it in other words, policy rates are much closer to neutral against the current backdrop and it’s time for a long pause.” — Charlie Ripley, senior investment strategist for Allianz Investment Management.
