Reply To: Federal Reserve Again Raises Rates 75bps as Expected, Hints at Possibly Smaller Hikes

#45189
TradersCom
Keymaster

Chicago Fed Pres. Charlie Evans

Inflation is very high right now, that’s the issue that the top of mind for Fed officials
there is good amount of strength in the US economy
I suspect that it unemployment will creep up
labor market is still good, and will be more challenging with higher interest rates
we will bring inflation down through making policy restrictive
we have to look at momentum of core inflation and that’s what has us most nervous
need a more restrictive seeing of monetary policy because inflation is high
we have further the going rate hikes
we are heading to 4.5% – 4.75% by springtime (NOTE the dot plot for 2023 was looking for 4.6% which is within that range)
I believe balance sheet reduction will be completed within 3 years
Fed will discuss 50 or 75 basis points at the next meeting
Policymakers are looking for 125 basis point rate hikes over the next 2 meetings