At his press conference following the Federal Open Market Committee (FOMC) statement on Wednesday Federal Reserve System Chair Powell mentioned the "disinflation" word 13 times.

After the December FOMC meeting, at his presser, Powell said that word, let me count, zero times.

For those divining nuance from the words of a Fed Chair this is the equivalent of being hit by a freight train. It's a monumental change in tone.

Morgan Stanley have responded sharply, and are forecasting a pause from the Federal Open Market Committee (FOMC) at its next meeting:

  • The disinflationary process is underway and combined with a weaker labor market we think the incoming data and forecast revisions to the March SEP will lead the Fed to pause at its next meeting.


If you missed the FOMC on Wednesday and need a catch up:

And, a small collection of responses:

Federal Reserve