Dirty Jobs: Fed Sees Through Murky Economic Data

There are some jobs that I just don’t want.

The home plate umpire in the 9th inning of a major league baseball game. Fishing in the Bering Sea during an ice storm. Or a Fed Governor who must decide what to do with short-term interest rates heading into 2025.

Here’s a small sampling of the economic crosscurrents the Fed has to manage as it aims to accomplish its dual mandate of promoting maximum employment and stable prices.

Tipping the Scales

Fed governors will evaluate conflicting economic signals at the two-day meeting ending on December 18, during which they will consider their next move on short-term rates.

The Fed’s scheduled two-day meeting ends on December 18. At 2:00 p.m. ET, the Fed will announce its decision on short-term rates, and the financial markets will react to the news. A short time later, Fed Chair Powell will hold a press conference, which may produce more volatility as he discusses the Fed’s outlook for 2025.

I’ll be watching and giving you updates. In the meantime, I hope you will spend more time focusing on the holiday season and less time thinking about the Fed!

^{CNBC.com, October 11, 2024. “The Federal Reserve may have pretty much just hit its 2% inflation target”}

^{CNBC.com, November 1, 2024. “U.S. economy added just 12,000 jobs in October, impacted by hurricanes, Boeing strike”}

^{Insight.FactSet.com, November 15, 2024. “Earnings Insights”}

^{Finance.yahoo.com, November 15, 2024. “October retail sales top estimates, September spending revised sharply higher”}