June FOMC Review: “The Economy is in Great Shape”
FOMC Review Snapshot
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Fed Chair Jay Powell noted “the economy is doing very well” and that “business investment continues to grow strongly” in his press conference. This has enabled the Fed to only gradually raise interest rates and allow the economy’s improved trajectory to continue unimpeded. This is notable as the Tax Cuts and Jobs Act (TCJA) is often mischaracterized as possibly causing unsustainable economic growth and accelerating inflation, which would call for more aggressive Fed interest rate hikes. In reality, TCJA is designed to sustainably raise economic growth without stoking inflation.