All eyes are on the FOMC meeting as it begins on Tuesday, with markets wondering the potential implications for the future of interest rates. Joining Catalysts to share his insights and expectations regarding the Fed's decision is Deutsche Bank Senior U.S. Economist Brett Ryan.
Ryan acknowledges that in light of recent inflation data, "it's difficult" to envision the Fed adopting a dovish tone during tomorrow's decision announcement. Instead, he anticipates the central bank will denounce fears of an impending rate hike but hold interest rates steady amid the elevated inflationary environment "until they see more progress" toward their target.
Turning to consumer spending, Ryan says since the pandemic, "consumer spending has been divorced from consumer confidence." However, Ryan notes "the important thing to follow" is the labor market, "what's supporting spending is labor income growth."
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Ryan acknowledges that in light of recent inflation data, "it's difficult" to envision the Fed adopting a dovish tone during tomorrow's decision announcement. Instead, he anticipates the central bank will denounce fears of an impending rate hike but hold interest rates steady amid the elevated inflationary environment "until they see more progress" toward their target.
Turning to consumer spending, Ryan says since the pandemic, "consumer spending has been divorced from consumer confidence." However, Ryan notes "the important thing to follow" is the labor market, "what's supporting spending is labor income growth."
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Get the latest news and data at finance.yahoo.com
- Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
- Follow Yahoo Finance on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
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