Is the Fed Ready to Pause?

Presented by Marc Aarons

Over the years, the Fed has followed a similar pattern with interest rates. It raises interest rates, then pauses, so it can see how the economy is adjusting to the higher rates. So, when will the Fed be ready to pause?  The Federal Open Market Committee gave an update on its outlook for interest rates when it released the minutes from its November 2022 meeting.

“In addition, a substantial majority of participants judged that a slowing in the pace of (interest rate) increase(s) would likely soon be appropriate,” the Committee said. “A slower pace in these circumstances would better allow the Committee to assess progress toward its goals of maximum employment and price stability.”

It’s an encouraging update that leaves plenty of room for interpretation. But when investing, it’s best to focus on what you can control and understand that markets will fluctuate over time.

Marc Aarons may be reached at 714-887-8000 or marc@ocmoneymanagers.com

www.ocmoneymanagers.com

MMI Disclosure: This material was prepared by MarketingPro, Inc. for use by Marc Aarons. Money Managers, Inc.; is a Securities and Exchange Commission registered investment advisor.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results.  Investments involve risk and are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.