The Federal Reserve shocked financial markets last week when the Federal Open Market Committee (FOMC) moved up its plans for interest rate hikes by one year to 2023. It also raised its inflation prediction to 3.4 percent. The Fed kept quiet on curbing its unlimited quantitative easing program, noting that it depends on economic data.
But the Fed faces a quagmire: allow inflation to run hot or risk sending a stimulus-dependent stock market into a tailspin.
Fed Chair Jerome Powell and Co. will need to pick their poison.
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