War and Food Prices Could Heat Up Powell's Summer
Uncertainty has given the Fed reasons to pause rate cuts. Here are a couple of more.
Still no rush to cut.
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The Federal Reserve is always powerful. For decades, and certainly since the Global Financial Crisis, it has probably been the single most important driver of the world economy and markets. It hasn’t lost that role, but for the coming few months it is out of the driving seat. What happens next at the Fed is contingent on what happens on a number of other fronts. Thus, as Points of Return suggested last week, in deference to the Beach Boys, we need to wait all summer long for clarity on where monetary policy goes from here.