Economic Commentary
Markets are having a sugar rush
Economy & Policy September 27, 2024 Chief Economist Eugenio J. Alemán discusses current economic conditions. After the first rate cut in two years went according to market expectations as the Federal Reserve (Fed) obliged and reduced the federal funds rate by 50 basis points (bps), markets have continued to run with the Fed’s ball […]
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 […]