Fed's Bowman: Another 75 bps will be appropriate in July and hikes of 50 subsequently

• Another 75 bps appropriate in July and hikes of at least 50 bps at "next few subsequent meetings"
• Further hikes may be need after that, depending on how economy evolves
• I am committed to bringing real Fed funds back into positive territory
• Makes sense to eventually sell Fed's MBS holdings
• Labor shortages will likely persist in many sectors
• Global supply chain issues continue as China covid lockdowns slow production
• Need to use Fed tools to address inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term before expectations become entrenched

These are strong comments. 75 bps gets the Fed to 2.25-2.50% at the next meeting. Hikes of 50 bps at "next few meetings" could be seen as at least 3 meetings, which would get to 3.75%-4.00%.

Right now, the Fed funds market is pricing in a peak in the 3.25-3.50% range as the focus shifts to growth.