by David Kranzler
Investment Research Dynamics
The FOMC statement and Powell’s presser is being marketed as “more hawkish.” But I do not see remotely the appearance of a “more hawkish” tilt, let alone any substance to back that assertion.
The Fed may or may not raise the Fed funds rate one-half of one percent in 2023…50 basis points – maybe. This would be dependent on more economic improvement and “the Committee’s assessment of maximum employment and price stability goals.”
Please define “maximum employment.” Prices are already unstable and will become more unstable. The lack of definition for the events that would trigger rate hikes is intentional. It removes any degree of accountability and it allows the Fed to move the “goal posts” capriciously.