The verdict is in—the Fed wasn’t dovish enough.
As you know, the Fed cut rates 25 basis points yesterday. But the future path for rates is murky at best. There’s more than a fair amount of dissent on the FOMC.
Take a look at the “dot plot” (individual Fed governors’ interest rate targets) for the end of 2019.
Here’s what’s happening:
- Five members approved of the 25 basis point cut (but those same governors expect rates to hold steady at the current target of 1.75% to 2% for the rest of the year)
- Seven members favor at least one more cut by year end
- Five members think rates should end 2019 between 2% and 2.25%
So what’s next?
Outspoken former Fed advisor Danielle DiMartino Booth has an interesting idea you should consider. She discussed it during a new discussion with CEO Keith McCullough
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