Alas, with systemic issues now afoot, markets are expecting a less hawkish tone from the Fed moving forward. The rationale was that a resilient US labor market coupled with a still-growing US economy meant that Fed policymakers had more work to do in order to bring down price pressures. 25-bps rate hike expected in Marchįed Chair Jerome Powell spent his, as did other FOMC officials, in the run up to the Fed’s communication blackout window extoling the benefits of a ‘higher for longer’ interest rate regime. Accordingly, with much of the recent turmoil in markets coming after the Fed’s blackout window began, the slew of commentary made by Fed officials, largely geared towards inflation and effectively nothing geared towards financial stability, appears to be stale. Initially, between the February and March 2023 rate decisions, rates markets began the process of discounting a 50-bps rate hike. Ahead of the Federal Reserve’s March monetary policy decision, we’ll review comments and speeches made by various Fed policymakers before the communications blackout window.
0 Comments
Leave a Reply. |