The Atlanta Federal Reserve Chairman Raphael Bosticsaid Monday that “it is fair to say that The Fed is willing to go overboard.“.
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Services inflation is likely to prove thornier than the Fed would like.
Wages are not seen to be driving the prices of final goods.
The economy continues to have “quite a bit” of momentum and remains robust.
Right now, the economy can absorb the Fed’s policy tightening.
The baseline scenario for 2023 is 1% GDP growth, with no recession.
We believe that inflation may fall to around 3% this year, although the Fed’s policy change will take time to happen.
If a contraction occurs, it will be superficial and brief.
Rates will rise to 5 and 5.25%.
Broad consensus that Fed policy is in a tight place, appropriate to be much more cautious in terms of gauging further. movements
Returning to a more normal cadence of policy moves will be appropriate and important.
Rates will have to stay high for a long time… well into 2024.
It’s fair to say that the Fed is willing to go overboard.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
