Fed's George (2022 voter) expects Fed's policy rate to be in the neighbourhood of 2% by August and noted that evidence inflation is clearly decelerating will inform judgements about further tightening
Says:
- Inflation is too high and too broad to dismiss while returning it to the Fed's 2% target is the top priority.
- Pandemic may have permanently damaged the economy's productive capacity.
- War or China's COVID lockdowns could drag down growth and take some heat out of inflation.
- Further disruptions from war and lockdowns could add to inflation and require even more stronger Fed action.
- Excess household savings are an important wildcard for the demand outlook.
24 May 2022 - 00:30- Fixed Income- Source: Newswires
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