Fed Thoughts

Fed Thoughts: The Gravitational Pull on Monetary Policy

Fed Thoughts White Paper
December 2023

Authors & Contributors

We believe the message for the Federal Reserve (Fed) is that doing nothing is hard work. In other words, investors have come up with their own presumptions about the direction of rates—if policymakers are not talking about raising rates, then they must be thinking about cutting them.

Chief Economist and Macro Strategist Vincent Reinhart explains why this makes how the Fed communicates its policy intentions important.