Bullard bull

St Louis Fed President James Bullard dissented in Wednesday's decision. He called for a 50 bps hike and also wanted to start trimming the balance sheet.

He noted that the economy will grow above trend in 2022 and 2023 and further strengthen a jobs market that's "already stronger than it's been in a generation."

He also noted that inflation is far above the Fed's target.

"The combination of strong real economic performance and unexpectedly high inflation means that the Committee’s policy rate is currently far too low to prudently manage the U.S. macroeconomic situation," Bullard wrote. " US monetary policy has been unwittingly easing further because inflation has risen sharply while the policy rate has remained very low, pushing short-term real interest rates lower. The Committee will have to move quickly to address this situation or risk losing credibility on its inflation target."

Bullard also noted that his dot in the dot plot called for hiking to above 3.00% fed funds this year, something pretty much everyone suspected.

Bullard dot

The Fed would have to hike by 50 basis points at 5 of the remaining 6 meetings this year to get to 3.00-3.25%.