Reply To: Hawkish Federal Reserve Again Raises Rates 75bps as Expected, March 23 Terminal Rate Higher



We will make decisions meeting-by-meeting now
We will ask if we’re seeing a slowdown in economic data that we think we need? We think we’re getting some evidence now
We will be watching both core and headline inflation and what they say about the outlook
We need to get policy to at least a moderately restrictive level
We think it’s time to go to a meeting by meeting basis and not provide clear guidance
We have to take estimates of where rates will be next year with a grain of salt
3.00-3.50% is what the SEP says on a moderately restrictive stance at year end
Latest inflation report was worse than expected
By Sept, we’ll have more inflation data in hand
Will ask ourselves ‘are we confident that inflation is on the way to 2%?’