The next FOMC meeting is on March 18 and every economic report should be evaluated on whether it increases the odds of a rate cut or maintaining the status quo. As discussed in the February Macro Tides, there are three groups within the FOMC. “Those favoring lower rates are convinced inflation will moderate in coming months, so waiting to lower the Funds rate only puts the labor market at risk of slowing needlessly. The second group is more concerned about inflation since it remains well above the FOMC’s 2% target. The third group agrees with those worried about the labor market and...
