At this week’s Federal Open Market Committee (FOMC) meeting, I supported the decision not to change the target range for the federal funds rate. However, I dissented from language in the post-meeting statement that suggests the next adjustment to the target range will most likely be a cut. The statement says: “In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.” This language evolved out of the series of three rate cuts the FOMC made last fall. In that context, ... (full story)