Free Trial

Powell Says Haven't Decided Whether Future Policy Could Include 50bps Hike

FED

Q: Does being "humble and nimble" about monetary policy include a possible 50bp hike?

  • A: We haven't made these decisions, we really haven't. This is a different situation to the last cycle when inflation was very close to /below 2%, unemp was higher and growth was in the 2-3% range.
  • Now inflation substantially above 2%; growth substantially higher than potential; labor market is historically tight. "The least tight aspect of it is the unemp rate which is still below our median estimate of max employment"; if you look at things like quits, job openings, wages...a very very tight labor market.

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.