‼️FOMC Press Conference‼️
75BP Hike
➡️Strongly committed to bringing inflation to 2% goal 🥅
➡️Moving stance ‘Purposefully’
Indicators point to modest growth in 4Q
➡️Labor market remains extremely tight
➡️Job gains robust, wage growth still elevated
➡️Labor Market continues to be out
➡️Goods and services still high
➡️They are aware high inflation poses hardship
➡️Seeing rate hike effects on demand like housing
➡️At some point will be appropriate to slow rate hikes
➡️We still have some ways to go on rates
➡️Ultimate rate level higher than previously expected
➡️Will stay the course until the job is done
➡️Need to see inflation coming down decisively
➡️Watching financial conditions tightening, eco impact
➡️Time to slow rate hikes may come as soon as next meeting
➡️Likely will have discussion for lower rate hike in the future
➡️Don’t think we’re overtightened
➡️Rate hikes have been good, successful
➡️We’ll want policy rate to where real rate is positive
➡️Looking for positive rates all across the curve
➡️Financial conditions have tightened quite a bit
➡️Haven’t clearly identified way to say inflation entrenched
➡️Ultimate rate level higher than previously anticipated
➡️Don’t want to fail to tighten enough loosen too soon
➡️Very premature to think about pausing rate hikes
➡️Labor market is very strong 💪🏻
➡️Households have strong balance sheets
➡️Housing 🏠 activity in decline
➡️Housing 🏠 market was very overheated during the pandemic
➡️Housing 🏠 needs a balance between supply and demand
➡️Not seeing poor underwriting in housing like the ‘08 crisis
➡️Don’t see a wage price spiral 🌀
➡️Want wages to go up at a sustainable pace
➡️We have a strong💪🏻 US Economy
➡️We take global issues into account in our models
➡️Strong 💪🏻 dollar is a challenge for some countries
➡️Fed 🧰 tools ⚒️ well suited to address demand in economy
➡️Public’s trust is Fed’s Most Important Asset‼️
➡️FOMC discussed importance of accountability, ethics
➡️No update on pending OIG Investigations
➡️Point at which rent inflation slows is still far away
➡️We have a ways to go, ground to cover with rate hikes
➡️We are committed to getting this inflation under control
➡️Consumer spending is at modest levels, they are fine, modest growth
➡️Pausing is not something we are thinking about
➡️The window 🪟 for a soft landing has narrowed but still possible, hard to say
➡️No one knows if we will go into a recession
Source: Bloomberg TV
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