Federal Reserve Chair Jerome Powell's August 23, 2024 speech was a significant announcement forecasting future Fed interest rate policy. With inflation moving closer to the 2% FOMC target, occurring without a sharp rise in unemployment, the statement set the stage for possible rate cuts in September. Mr. Powell reviewed challenges to the post-pandemic economy, including supply constraints and demand surges. He noted the Fed's commitment to supporting a strong labor market while gradually easing policy restraints. (See: Does Asymmetric Monetary Policy Exacerbate Asymmetric Outcomes? https://www.impactinvesting.online/2024/06/does-asymmetric-monetary-policy.html .) For several reasons, this approach is particularly relevant to minority firms: 1. Access to Capital: Lower inflation and stable interest rates improve borrowing conditions. Minority businesses, often more reliant on external financing, benefit from easier access to affordable credit. 2. Labor Market Stability: Minor...
ImpactInvesting.Online explores the intersection of economics, finance, equity, and accountability. Featuring expert commentary, original data, and real-time analysis, the blog covers ESG, impact investing, and socially responsible finance with a focus on how markets can serve the public good. Updated regularly with insights on policy, corporate behavior, and systemic risk.