Economic Commentary
The Federal Reserve agreed with markets but tried to change the narrative
Economy & Policy September 20, 2024 Chief Economist Eugenio J. Alemán discusses current economic conditions. After more than six months of indicating that it lacked conviction regarding the path of inflation, the Federal Reserve (Fed) seems to have gotten a conviction boost so large that it pushed it to lower the federal funds rate […]
Federal Reserve cuts interest rates for first time in four years
Markets & Investing September 18, 2024 The half-percentage point reduction at the September 17-18 FOMC meeting represents the largest non-COVID era cut by the Fed since 2008. The Federal Reserve (Fed) cut interest rates for the first time in over four years, moving its benchmark rate 0.50% lower to support the labor market, while […]
The Federal Reserve: Between a rock and a hard (market) place
Economy & Policy September 13, 2024 Chief Economist Eugenio J. Alemán discusses current economic conditions. The Federal Reserve (Fed), and markets, overreacted to the slightly higher inflation seen during the first quarter of the year. After that scare, the Fed went from expecting three cuts in the federal funds rate in 2024 to just […]
Employment weakness cements our view
Economy & Policy September 06, 2024 Chief Economist Eugenio J. Alemán discusses current economic conditions. August’s employment report, which was weaker than markets were expecting but stronger than our call, cements our view that the easing cycle will begin during the next Federal Open Market Committee Meeting (FOMC), which takes place September 17-18. We […]