Does the Fed know something we don’t?
Fed not wanting to damage global economic recovery
In this video, Shane Oliver, AMP Capital’s Head of Investment Strategy and Chief Economist asserts that the US Federal (Fed) Reserve’s decision to keep interest rates on hold was the right one.
At the end of the day, the Fed has a dual mandate, changed with keeping:
- The US economy in full employment
- Inflation stable inflation at about 2%
The decision promotes an environment where investors can be confident that the Fed is not going to do anything that damages the global economy recovery, particularly at a time when US inflation is still low.
About the author
Head of Investment Strategy and Economics and Chief Economist at AMP Capital, Shane is responsible for AMP Capital's diversified investment funds. He also provides economic forecasts and analysis of key variables and issues affecting, or likely to affect, all asset markets.