The Fed Expects a Recession: 1 Index Fund With a Perfect Track Record to Buy Now
The Federal Open Market Committee (FOMC) is a policymaking body within the Federal Reserve System. It helps the central bank fulfill its dual mandate of maximizing employment and maintaining stable prices. Specifically, the 12 members of the FOMC meet eight times each year to discuss economic data and adjust monetary policy, usually by raising or lowering the federal funds rate, which impacts other rates throughout the economy (e.g., bank loans, credit cards).
Over the last 14 months, the FOMC has aggressively tightened its monetary policy in an effort to stamp out inflation. Officials have approved 10 consecutive rate hikes, raising the federal funds rate at its fastest pace since the early 1980s. Those efforts have indeed caused inflation to cool but also throttled economic growth, and recent turmoil in the banking industry could add momentum to the problem.
The FOMC now expects the U.S. economy to enter a recession before the end of 2023. Fed officials believe the recession will be mild, but some investors will undoubtedly attempt to trade the news by avoiding the stock market until the economy improves. That's a bad idea.
Source Fool.com