We are still fighting with inflation and the de-inflation process has continued. Sounds very mixed signal to me. I think they are not sure what is going to happen and are sort of working from the middle of the road, lukewarm perspective. Just a touch of optimism. Personally, I think the data is mixed and could go either way.
I see housing as a potential drag but how much is still an open question.
Just as a learning opportunity "The Federal Reserve controls the three tools of monetary policy--open market operations, the discount rate, and reserve requirements" FOMC is responsible for open market operations. You can learn more about the FOMC HERE.
Bullet points are below......
-FOMC raised our policy interest rate by 25 basis points.
-Committed to bringing inflation back down to our 2 percent goal.
-Continuing the process of significantly reducing the size of our balance sheet.
-The U.S. economy slowed significantly last year.
Federal Reserve News Conference Transcript PDF (02/01/2023)
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