Fed Signals Tightening Cycle Amid Fiscal Policy Concerns
1 report, 1 independent
Updated Sep 21
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What happened
The Federal Reserve has begun a new tightening cycle, during which it raised interest rates by 25 basis points last week. While discussing the central bank's actions, fund manager Axel Merk noted that Chair Jerome Powell has made progress in restoring discipline within the Federal Reserve.
From kitco.com
Why it matters
Merk argued that even strong monetary policy cannot fully counteract poor U.S. fiscal policy. He stated that when poor fiscal policy combines with poor monetary policy, the situation can worsen dramatically. Powell is focused on returning the central bank's attention to price stability and the cost and availability of credit.
From kitco.com
Who's involved
- Jerome PowellChair of the Federal Reserve
- FEDCentral bank undergoing a tightening cycle
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The entities involved
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Federal Open Market Committee
committee of the United States Federal Reserve
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Jerome Powell
president of the FED
Related events
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