Powell trying to get us to 2% inflation!
At some point, it will be "appropriate to slow the pace of increases". Data dependent.
1. Inflation needs to clearly SLOW and move back down to 2%.
2. Growth below trend
3. Labor market returning to better balance.
1. Inflation needs to clearly SLOW and move back down to 2%.
2. Growth below trend
3. Labor market returning to better balance.
Fed staffer during Powell's Q&A...
Word salad when being asked about the "recession" outlook given the expected increase in unemployment rate.
Powell stressed that the vacancy/unemployment ratio (h/t @SamuelRines) is an important indicator for labor market balance. Not sure how they are really thinking about the Beveridge curve.
@SamuelRines Positive real rates across the curve, you say?
Basically the Fed is all about ripping the band-aid off to avoid greater and more enduring pain, in their opinions.
Powell - the current projected policy path will be enough to get the job (inflation down to 2%) done. 😬 Like in the past?
So much perceived risk to the upside...
Powell in the next few meetings asking questions instead of answering questions.
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