• That can allow the Fed to pause and reassess
  • We've got a lot of momentum suggesting that we're on the path to 2%
  • Still need to assess the economy, inflation path in order to avoid unnecessary economic damage
  • Rate increases in the past year now only starting to 'bite'; full impact may take some time

The messaging is consistent with the prevailing view seen in Fed funds futures, that the Fed only has one more rate hike to go in May before pausing in June. But mind you, markets are also looking to rate cuts later in the year and that is something that the Fed hasn't quite opened the door for yet.