Source: Fortune
Summary
The Federal Reserve held its benchmark rate steady, with new Chairman Kevin Warsh indicating that he won’t signal future rate moves as clearly as his predecessor. This could lead to less predictability and more volatility in interest rates. Borrowing costs are unlikely to come down, with the 10-year Treasury above 4.4% and oil and gas prices potentially easing while electricity prices rise. The Fed’s decision does not determine the outcome of the new era of innovation, which will be shaped by the creativity, resilience, and skills of talent in cities like Detroit.
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The numbers tell one story.
Kevin Warsh’s first meeting as Federal Reserve Chairman resulted in a steady benchmark rate, but with four dissenting votes among the 12 cast on the Federal Open Market Committee. Warsh indicated that he won’t signal future rate moves as clearly as his predecessor, which could lead to more volatility. The 10-year Treasury is above 4.4%, and oil and gas prices may ease while electricity prices rise. Meanwhile, Detroit is a hub of American invention and reinvention, with a growing startup scene and a diverse talent pool. The city’s future will be shaped by the creativity, resilience, and skills of its people, not just the Fed’s decisions.
The reinvention of Detroit sounds like a familiar story, with the city’s ability to unlock excellence in all its forms and give many the path to a good life.
Author: Evan Null
