- 50 bps will be on the Powell for the May meeting
- I don't want to bless any market pricing but they are acting appropriately to our communications
- At the recent meeting, many on the committee thought one or more 50 bps hikes appropriate
- We need price stability to have a strong labor market
- It is essential to restore price stability
- In the US we have very strong growth and high inflation elsewhere has different levels of growth and a lower starting point
- We have had an expectation that inflation would peak around this time but these expectations have disappointed in the past
- Are we going back to the old economy? Probably not. What does the new one look like?
- There is a lot to like about the US labor market but it's not sustainably hot
The bond market cooled off despite some hawkish comments from Powell but that might represent some flight to safety as equities tumble.