Fed Preview: Done, Or More To Be Done?

The FOMC will make some close calls and tough decisions.

We’ve had a vigorous debate within the Economics Department over whether the Federal Reserve has reached the end of its tightening cycle. While there is consensus that interest rates will be left unchanged at the Federal Open Market Committee (FOMC) meeting next week, opinions diverge from there.

Debating points on each side of the areas critical to the Fed’s decision are enumerated below.

Economic Growth

History is crucial to the study of economics, which has offered little reason for economists to be optimistic in this cycle. Corrections to high inflation have almost always been brought about by a recession.

Core Retail Sales