The Federal Reserve Lowers Interest Rates And Predicts More Inflation

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Yesterday, the Federal Reserve lowered interest rates by one quarter of a point and in its accompanying projections predicted that inflation is going to tick up, completely giving up on its 2% inflation target it has used for well over 20 years.

The stock market had some gyrations and most markets saw a little bit of profit taking.

I couldn’t really read anything into these short-term moves and am more interested to see how the markets trade today, tomorrow, and next week.

The one I am most interested in is the US bond market, because last year US bonds sold off after the September Fed meeting. You can see that in this chart of TLT.