What does the latest FOMC meeting minutes (24May2023) tell us
FOMC has released the minutes of its 02-03 meeting on 24 May 2023. Here are my thoughts on this matter. Screenshot from the latest FOMC meeting minutes My investing muse The Fed is expecting a recession and the unemployment rate forecast is expected to increase. Real GDP is projected to decline. The government has given their outlook for the coming months and the recession could be “mild”. I am not sure if we need to wait that long as the debt ceiling crisis looms. Different news sources have already suggested that the Fed would run out of funds by early June 2023. The debt ceiling will eventually be raised. Global concerns surround the magnitude and extent of collateral damages that will ripple through the US and cascade to the international market. Fitch Ratings has put the US long-term foreign-currency issuer default rating (IDR) as negative. USD erosion ~ Yahoo Finance article With the decline of the USD as a global reserve currency (to the recent 47%), who else could s...