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Fed Minutes Describe Combustible Inflation Setup
The word "restrictive" showed up just once in the May FOMC minutes, but allusions to front-loading rate hikes and getting policy to neutral sooner rather than later were a fixture.
Participants "noted that a restrictive stance of policy may well become appropriate depending on the evolving economic outlook and the risks to the outlook," the minutes said. "Many participants judged that expediting the removal of policy accommodation would leave the Committee well positioned later this year to ass
I’m not sure the pace is set or intentions are determined. On top of the immediate mixed messages between members, the slow pace is hard to justify specially if it’s for cushioning the normal people. They emphasize wanting to prepare markets but are behind their estimates and talked down higher hikes.
Will limiting their options and delaying cushion both streets while avoiding the potential outcomes/reactions outlined?
While it’s beyond the government’s data tracking capabilities, it sure would be nice to now how many of the 11.5 million job openings is with unprofitable vs. profitable employers. Many job openings by unprofitable employers may soon be superfluous…