With 2019 soon to be in the books and the last Federal Open Market Committee meeting behind us, it’s a good idea (and not too presumptuous) to give the Federal Reserve a report card.
Clearly, this year the Fed got it right. The policymakers working inside the Marriner S. Eccles Federal Reserve Board Building in Washington, D.C., realized that they had hiked rates in error in 2018 because the world’s economic expansion was indeed slowing appreciably. It was the exactly wrong thing to do, and even doing nothing would have been better. Don’t expect a forthright admission of this from the Fed, which prefers to crow how it got things right this year. So this year the Fed gets an A, but last year was an F grade.
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