-
The US service sector is still too hot for the Fed
The Federal Reserve (Fed) still has a very tough job ahead to bring inflation down to its 2% target over the long run while facing pressures from markets, which have a very different timetable than the Fed. At least, this is what transpired from the Fed’s June Federal Open Market Committee meeting (FOMC) Summary of Economic Projections (SEP) and dot plot. Furthermore, the Fed is facing a highly unsynchronized business cycle in the U.S. economy. Normally, economic cycles are synchronized, that is, they go up and down in a relatively synchronized fashion even though one sector is, typically, the culprit for ... (full story)