As many of you know, the Federal Reserve's Open Market Committee has eight scheduled meetings each year when the seven board members review the nation's economic activity and set the federal funds rate's target rate.
In this extraordinary year, the Fed may announce in September the results of its year-long policy review. The Fed's focus has been where Americans might expect: examining inflation and employment as the nation recovers from the volatility that followed COVID-19.¹,²
In recent scheduled meetings, the Fed has been working to determine its ultimate policy plan, with an emphasis placed on assessing the inflation rate. Fed's inflation target is usually in the neighborhood of 2%, a higher percentage may be desirable, with the ultimate goal being economic growth.1
It's not unusual to have questions or concerns about the Federal Reserve and how its policies may influence economic activity. While they have a significant influence on all other aspects of the economy, a well-considered financial strategy will have many of these factors taken into account. A conversation with our staff at Viera Financial should help answer many of your questions.
¹ CNBC.com, August 4, 2020
² NYTimes.com, August 12, 2020
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