Market MakeHer Podcast 30. FOMC Meeting, Interest Rate Cuts & Inflation (aka Jess Watched The Fed Press Conference So You Don't Have To)
Mar 22, 2024
The recent FOMC press conference revealed that federal reserve rates will remain unchanged, with three projected interest rate cuts by year's end. Discover how these shifts can affect your high-yield savings accounts, mortgages, and loans. The discussion dives into the balance between maximum employment and price stability, raising questions about what constitutes good or bad news. Key insights include the role of the Fed's balance sheet, how rate changes ripple through the economy, and what to expect for inflation and unemployment.
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Listener Story: Teaching Kids Finance
- Kevin, a dad, listens with his 10- and 12-year-old daughters and praises the podcast for teaching finance.
- Jessie DeNuit and Jess Inskip promise kid-friendly episodes and resources to spark family money conversations.
Fed's Dual Mandate Shapes Policy
- The Fed's dual mandate is maximum employment and price stability, which requires balancing competing goals.
- Jess Inskip explains that achieving both is more art than science and shapes monetary policy choices.
Rate Hikes Trigger A Domino Effect
- Raising the federal funds rate makes borrowing costlier across credit cards, mortgages, and business loans.
- Jessie DeNuit highlights this domino effect as the Fed cools demand to fight inflation.