Mary daly meme muscles
  • Moving 'purposefully' to a more neutral stance is 'top priority'
  • Inflation is too high
  • Once Fed reaches neutral, Fed needs to assess financial conditions and inflation to see what more needs to be done
  • Fed's full employment goal has been met
  • Calls for a 'smooth and methodical' approach

The messaging around this has been sharpened this week as both her and Evans (two 'team players' at the FOMC) are saying the same thing. The nod to 'financial conditions' is the Fed saying that if the stock market falls 20% this year, it won't keep hiking.

More:

  • Consumers shifting spending to services from goods helps on inflation
  • I think inflation will start coming down this year but it's unlikely to get to 2%