“What’s the rush?”
That has been the response of several prominent Fed members over the past week when they were asked about hiking rates.
The hawk think the the risk of inflationary pressures building and the opportunity to curb financial excesses alone is enough of a reason to start hiking rates but the doves say, “if inflation is low, there’s no need to hike rates prematurely.”
The inflation components in today’s PCE report were in-line with estimates and aren’t showing any signs of sudden acceleration.
Atlanta Fed President Dennis Lockhart is even worried about slowing inflation.
