by John Carney
Breitbart.com
The Fed’s Been Wrong About the Economy for Years
The Federal Reserve’s rate-cutting cycle has very likely come to an end—although it may take Fed officials several months to figure this out.
The Fed last hiked its overnight benchmark way back in July of 2023, when it raised the federal funds target to a range of 5.25 percent to 5.50 percent. At the time, the Fed was convinced that this level of interest rates would weigh heavily on economic growth, bringing the economy close to a recession or at least a long period of sluggish growth.
The summary of economic projections (SEP) released at the prior Fed meeting in June of 2023 showed that officials expected the economy to grow just one percent in 2023 and 1.1 percent in 2024. By 2025, growth was expected to creep up to 1.8 percent, which also happens to be the Fed’s long-run estimate of growth for the U.S. economy.