Confident but Not Aggressie
​This week’s FOMC meeting was uneventful. The Fed remained confident in their outlook about the economy. However, they gave no indication of adopting an aggressive policy stance that calls for urgent action. Instead, they remain content to respond to inflation when it does materialize.
The minutes of the meeting may prove to be more interesting though. They could provide some insight into two key questions we have around the Fed’s policy stance:
- We have heard from the FOMC about the upside risks to the economy from fiscal policy. But how is the FOMC weighing the downside risks from potential Trump policies on trade and immigration?
- What are some conditions or scenarios that would warrant further policy action?
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