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Powell Asked Why The FOMC Did Not Hike 100BP At This Meeting

FED

Q: Core PCE not forecast to be back to target in 2025, yet cuts as early as 2024? Why not 100bp at this meeting?

  • A: Core is 2.1 in 2025 and headline is 2.0, that's pretty close. I would say that if the economy follows this path, it would be a pretty good outcome. But it is a tenth higher than 2%.
  • As we said, we would make our decision based on the overall data coming in. If you remember, we got a surprisingly low reading in July and a surprisingly high reading for August. You never want to overreact to any one data point.

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