Powell Sees Ongoing Fed Rate Hikes (Patreon)

Key takeaway:

1) 75 or 50 bps in July

2) depends on economic data

3) no mention beyond that and he normally telegraphs

4) I think he is trying to talk (jawbone) inflation down and they have done that very well seeing demand destruction

5) KEY SENTENCE: "policy makers must be nimble if conditions surprise" ie if recession is in play they will pivot IMHO

https://www.bloomberg.com/news/articles/2022-06-22/powell-sees-ongoing-rate-hikes-needed-to-tame-hot-inflation

While Powell told reporters last week that another 75 basis-point increase, or a 50 basis-point move, was on the table for the next meeting in late July, Wednesday’s text made no reference to the size of future rate hikes. Fed Governor Christopher Waller said Saturday that he would support a 75-basis-point rate increase in July should economic data come in as he expects.