Even the hawks throwing in the towel
- Should proceed with caution, be patient on rate hikes
- Rates are not yet at neutral, but close
- Pause would give time to assess effect of rate hikes so far
- If inflation pressures emerge, more rate hikes could be needed
- Somewhat slower growth this year, yet still above potential
- Financial market conditions have tightened
- Farm sector downturn made worse by tariffs
- Upside and downside risks to outlook
George is one of the most-hawkish FOMC members and possibly the most hawkish. She's giving up on hikes here and signaling a pause. This is a notable shift and sign that no hikes are coming any time soon.
