- Inflation is causing pain economy for many Americans
- Inflation is a corrosive disease
- Rising inflation weighs on the disadvantage
- Inclusive economy meets jobs and price stability
- Inflation is not a risk, it's a reality
- Seeing job market vacancies fall. Pace of hiring should slow
- We are working toward balancing both sides of Fed mandate
- Supply and demand imbalance in the housing market is not solvable by the Fed
- We have a lot of work we can do to bring down demand
Fed Pres. Daly is telling the story like it is.
I would not expect the Fed to give in to the idea that "inflation is beat" anytime soon. The market may make that assumption (there is room for ups and downs in many markets like forex, stocks and bond given the moves to extremes), but the Fed officials will likely stick to the party line that we are in it to kill inflation, and will simply let it happen (at least in between meetings).
Nevertheless it will be interesting to see if the Fed goes ahead with the 75 and 50 basis point hikes going into the year end or shifts a little (maybe 100 bps vs 125 bps).
Having said that, the Fed has made their bed and must now sleep in it. If inflation does come down, they can deal with a policy pivot from tightening to steady policy, in 2023.