Reply To: Central Bank Watch – Fed Tempers Rhetoric, Bank of Canada Ahead


Fed’s Hawk Bullard talking to @NickTimiraos says

Fed should move ‘As rapidly as it can’ To over 5% and then react to data from there on
Wants to err on the tighter side to allow disinflationary process to take hold
Current policy “not quite” in restrictive territory, needs to be over 5% at least
Fed wants to ‘guarantee’ inflation will be on a steady path back to target and not waver on that
Last half of 2022 surprised to the upside on jobs and GDP
Global economic factors have improved with easing recession risks in Europe and China moving towards reopening. But that could fuel inflation
Core inflation hasn’t moderated as much as markets suggest
Prospects for a soft landing “have improved markedly”
Suggests a 50 bps at the upcoming meeting is appropriate