Powell Q&A
By this point we’d been expecting to see signs of inflation at least flattening
We got CPI and data on inflation expectations and shifted
We thought strong action was needed at this meeting
We decided we needed to do more front-loading
The next meeting could well be a decision between 50 bps and 75 bps
Repeatedly cites a ‘more normal range’ rather than ‘neutral’
Policymakers would like to see rates at a modestly restrictive level at the end of this year
He has shifted from ‘neutral’ to a ‘more normal’ range now rather than and caveated that with data dependence.