- We need to allow ourselves some time as we get to neutral rates so we can assess inflation pressures
- We need to find the right setting that gets us to 2% inflation and maintains a vibrant labor market
- Way too early to say the Fed has let its inflation mandate get out of hand
The market is now pricing in a 91% chance of 50 bps on May 4 but it's also pricing in two 50 bps hikes in the subsequent two meetings. Is that allowing 'some time'? And will the Fed continue to hike up to 3.00% from there?
