STORY: In an effort to tame inflation - which peaked as high as 9% in June 2022 - the Fed embarked on its most aggressive rate-hiking cycle in decades.
It's final increase came in July 2023, bringing rates to 5.25-5.50%, where they have hovered ever since.
With inflation cooling and the job market loosening, many investors expect the central bank to begin lowering rates this September.
Meanwhile, "the market has continued to make new highs", notes Buchanan, who adds that "history books could potentially speak very kindly" of the Fed's ability to cool the economy without thrusting it into a recession.
