![]() ![]() March 2 – Collins (Boston president) issued support for raising interest rates to a higher level and keeping them there for longer. Kashkari (Minneapolis president) declined to confirm he’s decided to back a 50-bps rate hike at the March FOMC meeting. March 1 – Bostic writes that the Fed’s main rate will need to rise to between 5-5.25% and remain there “until well into 2024.” “The ongoing imbalance between the supply and demand for labor, combined with the large share of labor costs in the services sector, suggests that high inflation may come down only slowly.”įebruary 27 – Jefferson says that changing the Fed’s 2% inflation target could “destabilize” inflation expectations.įebruary 28 – Goolsbee (Chicago president) suggests the Fed rely on the “real economy” more than what’s happening in financial markets, a nod to still-high inflation. Right now I’m still at 5.375%.”įebruary 24 – Jefferson (Fed governor) warned that price pressures may not recede as quickly as hoped. Louis president) suggested that rate hikes will continue over the coming months, noting “it will be a long battle against inflation, and we’ll probably have to continue to show inflation-fighting resolve as we go through 2023.”įebruary 17 – Bowman said that the Fed needs to keep raising interest rates because inflation remains “too high.”įebruary 22 – Bullard explained where he sees interest rates going, outlining “I think we are going to have to get north of 5%. Logan (Dallas president) spoke in hawkish tones, saying “we must remain prepared to continue rate increases for a longer period than previously anticipated, if such a path is necessary to respond to changes in the economic outlook or to offset any undesired easing in conditions.”įebruary 16 – Mester (Cleveland president) commented that she considered a 50-bps rate hike at the February FOMC meeting, and that “at this juncture, the incoming data have not changed my view that we will need to bring the fed funds rate above 5% and hold it there for some time.”īullard (St. Harker argued that more needs to be done, but the Fed “is close” to being finished with its hike cycle. What Did Fed Officials Say Between Meetings?įebruary 3 – Daly (San Francisco president) said “the most important thing to convey to listeners is that the direction for policy is for additional tightening and holding that restrictive stance for some time.”įebruary 6 – Bostic (Atlanta president) commented that a higher peak Fed funds rate could be necessary following the strong January US jobs report.įebruary 7 – Powell (Fed Chair), in an interview at The Economic Club of Washington, D.C., stated that the FOMC “think(s) we are going to need to do further rate increases,” indicating that rates may need to stay higher for a longer period as well.įebruary 8 – Waller (Fed governor) warned that “it might be a long fight, with interest rates higher for longer than some are currently expecting.”Ĭook (Fed governor) remarked that she favored more measured rate increases moving forward, as “this will give time to evaluate the effects of our fast actions on the economy.”įebruary 10 – Harker (Philadelphia president) said that he favors “a couple more” 25-bps increases.įebruary 13 – Bowman (Fed governor) commented that “we are still far from achieving price stability.”įebruary 14 – Barkin (Richmond president) said that the Fed might need to go higher for longer with interest rates, and that “inflation is normalizing but it’s coming down slowly.” Alas, with systemic issues now afoot, markets are expecting a less hawkish tone from the Fed moving forward. ![]() The rationale was that a resilient US labor market coupled with a still-growing US economy meant that Fed policymakers had more work to do in order to bring down price pressures. 25-bps rate hike expected in Marchįed Chair Jerome Powell spent his, as did other FOMC officials, in the run up to the Fed’s communication blackout window extoling the benefits of a ‘higher for longer’ interest rate regime. Accordingly, with much of the recent turmoil in markets coming after the Fed’s blackout window began, the slew of commentary made by Fed officials, largely geared towards inflation and effectively nothing geared towards financial stability, appears to be stale. Initially, between the February and March 2023 rate decisions, rates markets began the process of discounting a 50-bps rate hike. Ahead of the Federal Reserve’s March monetary policy decision, we’ll review comments and speeches made by various Fed policymakers before the communications blackout window. ![]()
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