MacroBrew - Fed’s hawkish pivot despite peaking inflation
We discuss our US inflation outlook and Fed’s continuing hawkish pivot.
Fed Chair Powell has recently underscored the Fed’s commitment to rapidly normalizing policy rates by emphasizing the concern about the inflation-generating process and labor markets that are “too hot.” We believe elevated inflation and risk of fundamental inflation dynamics changing will continue to pressure the Fed to maintain their hawkish stance, despite tighter financial conditions.
Contributor
Aichi Amemiya
Senior US Economist
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