Consumer inflation expectations have intensified, the chances of recession have increased, and financial markets have been in turmoil. Despite these developments over the last several weeks, investors should not expect the Federal Reserve to come to their rescue.
The Fed will conclude its two-day Federal Open Market Committee (FOMC) policy meeting and economic observers anticipate the U.S. central bank will keep its easing cycle on hold for the second consecutive meeting.
According to the CME FedWatch Tool, the futures market overwhelmingly expects the Fed to keep the benchmark federal funds rate unchanged between 4.25 and 4.5 percent.
Monetary authorities have consistently advocated higher-for-longer policy restraint amid sticky inflation and policy uncertainty….