Market bumps in the road have put the U.S. economy on a course for higher interest rates. Inflation information will be looked at closely by the Fed in the coming four weeks. The Fed has a 2 percent inflation goal for 2016.
The Policy Path from Bloomberg Business.
The oil price and the Chinese yuan have been major factors in the U.S. economy. The dilemma the Fed faces is that room to fight a downturn in the economy is tightening. The Fed’s miscalculation in the low oil price and the strength in the dollar has put pressure on the Fed to keep a recession from happening. Lowering interest rates is likely not to do much good.
The Fed’s next monetary meeting is set for March 15 and 16. Will another round of bond buying be proposed?