Interest Rates Now
The relationship between the Federal Reserve’s monetary policy and the fate of the American economy is precisely why markets focus so much on what the Fed might do. Unfortunately, though, knowing precisely where the “natural interest rate” is takes an educated guess at best for even the most prominent economists.
As such, politicians will continue to fight over whether the current interest rate is restricting economic growth or preventing the next financial crisis until they’re blue in the face.
At the moment, the Federal Reserve spent 2018 raising rates gradually, but it’s currently sitting in a sort of limbo as they watch current economic indicators. Current Fed Chairman Jerome Powell recently communicated that a rate cut would be possible if conditions continue to weaken, so keep an eye out for news about economic factors that might make him decide more easy credit is the right move.
