Posted 1/29/2024, 11:02:40 AM
Inflation Cools, Allowing Fed to Consider Rate Cuts While Navigating Election Politics
- Inflation has fallen back to the Fed's 2% target, better than expected a year ago when economists warned of recession
- The economy remains strong, with healthy consumer spending and low unemployment
- The Fed is now poised to cut interest rates in 2023, though the timing is uncertain
- Rate cuts could prove controversial in the context of the 2024 presidential campaign
- The Fed wants to be sure inflation stays low before cutting rates, but also risks triggering recession by keeping rates too high