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Modestly Hawkish Statement Changes Acknowledge Stalling Disinflation

FED

The new Fed Statement contains two marginally hawkish changes.

  • In a modest surprise, the Statement adjusts the inflation characterization, adding to "has eased over the past year but remains elevated" with "In recent months, there has been a lack of further progress toward the Committee’s 2 percent inflation objective."
  • In another very modest surprise, they recognize the current state of play on stalling inflation progress, no longer saying that the risks to the employment and inflation goals "are moving into better balance", but rather, "have moved toward better balance over the past year".
  • Statement changes vs March below:

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