Inflation putting squeeze on household spending
The Fed held rates where they were – 3.5% to 3.75% – and nobody was surprised. What actually mattered was the friction inside the room. Three FOMC members dissented, and not over some technical disagreement. They wanted the committee to stop pretending its next move is still a cut. They have a point. The "easing bias" language is a holdover from late last year, when the Fed was more worried about the labor market cracking than inflation flaring back up. In December, officials cut rates and talked about calibrating "the extent and timing of additional adjustments." That framing made ...