One of the biggest questions among market participants is how many times the Federal Reserve will cut rates in 2025. Some have even floated the possibility of a rate hike during the year.
The Fed and its decisions on monetary policy are important. Central bank actions affect the cost and availability of money, which can move the needle on the economy.
But as I’ve been arguing over the past year, the Fed is far less relevant today than it would be during economic crises that demand sudden and significant changes to policy to address problems like surging inflation, plummeting economic activity, and shortages of market liquidity.
Sam Ro | Yahoo Finance