The Fed blackout starts at midnight but there’s always a race to get in the last word:
- Welcomes moderation in housing-related inflation
- High inflation as become embedded in the economy
- Job market still strong but there are signs of cooling
- Inflation pressures have been abating but core prices still sticky
- March PCE inflation likely to moderate to 4%
- Path back to 2% likely to be uneven and bumpy
- We’re trying to figure out where the Fed needs to stop with rate rises
- Continued economic strength and slower disinflation could push the Fed to do more
- Monetary policy moving into a more uncertain phase
These are relatively dovish comments and work well with a one-and-done scenario where the Fed wants some time to wait and see how the economy evolves.
The March PCE inflation report is due out on Friday.
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