As inflation concerns continue to loom over the economy, Federal Reserve officials are currently considering the path of interest rate cuts for the rest of the year. Steve Sosnick, the Chief Strategist at Interactive Brokers, recently shared his thoughts on the Fed’s dual mandate during an interview with Market Domination. In his analysis, Sosnick emphasized the importance of considering not only stable prices but also the credit market and banking systems as a crucial but often overlooked aspect of the mandate.
Sosnick pointed out that upcoming March jobs report will provide valuable insights into the health of the job market, a key component of the Fed’s dual mandate. While stable prices are closer to the target, they have not yet reached the desired level. Federal Reserve Chair Jerome Powell has acknowledged this issue, indicating that there is still work to be done in achieving price stability.
Regarding full employment, Sosnick noted that the unemployment rate has hovered around 3.9%, with expectations for a slight decrease to 3.8% in
