I agree that the Fed is stuck. I don’t think we’re in stagflation yet, but the risk is definitely there. A slowing economy COULD slow inflation enough to give breathing room for a rate cut, but that’s far from certain.
Although I’m not complaining about the gains in my portfolio, today’s rally after the announcement looked like a Fool’s Rally to me. Considering I read the Fed’s statment to mean “The Economy isn’t great, but Inflation is too high to give a rate cut”, there really was nothing to celebrate. I guess some investors must have been fearing aggressive anti-inflation rhetoric.
I’m definitely watching closely and considering closing a position or two as we move back towards 1460 on the S&P 500, the previous breaking point back in Feb.
