Free Trial

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:

107 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

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: