‘Upcoming Meetings’
Ostensibly, traders had good reason to parse the April Fed minutes.
After all, the US economy is at an "inflection point" (as Jerome Powell is fond of putting it) and even before last week's flaming-hot CPI print, there were burning questions about when policymakers would be compelled to admit that "further progress" towards the FOMC's goals had surely been made, semantic debates about the meaning of the word "substantial" notwithstanding.
But April's CPI report effectively rendered every conv
I’m wondering how to reconcile the fact the US government is paying people to avoid joining the workforce via 2.000 USD/month being the Fed issuing those dollars while one of their objectives is full employment.
If somehow inflation manages to be more resilient than expected, I wonder how deep will the impact of synchronously removing stimulus checks, asset purchases and raising interest rates be.
Common sense dictates this would only happen under extreme inflationary pressures with the caveat being the definition of “extreme inflation” in the post-GFC world is nowhere near what the financial system could manage in the 70’s.