Fed Chair Powell says until recently clear further firming was warranted and now Fed has come a long way, with uncertainty about lagged effects of policy; our guidance today is limited to factors that go into policy decision
Important
SourceNewsquawk
SectionFed
- Guidance today is limited to assessing conditions that might warrant further firming.
- Assessment will be an ongoing one.
- Recently it has been the case that markets are pricing a different path.
- Seems to reflect a different forecast of inflation coming down more quickly.
- Surveys of market participants are closer to own forecasts.
- We can afford to look at data and ongoing outlook.
- The risks of doing too much versus doing too little are becoming more balanced.