Federal Reserve Bank of Boston President Susan Collins gives 2023 Goldman Lecture in Economics, "Reflections on Policymaking Amidst (Pandemic) Uncertainty".

Headlines via Reuters:

  • Fed is at or near peak of rate hike cycle
  • Further rate hike could be warranted depending on incoming data
  • Expects Fed to keep policy restrictive for some time
  • Policy must stay restrictive until clear sign inflation moves to target of 2%
  • Optimistic inflation can be tamed with ‘orderly slowdown,’ small jobless rise
  • Policy patience will give fed time to get read on economy
  • Main uncertainty is measuring impact of past fed actions
  • Fed faces challenges in extracting signal from economic data
  • Cooler core inflation will need softer labor market
  • Too soon to say core inflation on trend for 2%
  • Chance of a soft landing has gotten higher for economy
  • As savings dwindle, economy becoming more responsive to rate policy

I would have though some of these officials would be a little more circumspect given we get the latest CPI reading later on Thursday. Especially after the blow out PPI:

And then ...

Is there a little bit of sleepwalking going on? I don't want to be a curmudgeon but 2.2% vs. 1.6% and stocks continue merrily higher?



then ...

Fed collins boxing meme