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Powell Says SEPs Does Incorporate November Inflation Report

FED
  • Q: All else equal, would you feel more comfortable probing where the terminal rate is by moving 25bp, including at the next meeting?
    • A: Haven't made a judgment on what size, but what you said is broadly right which is having moved so quickly with so much restraint still in the pipeline, the appropriate thing to do is move to a slower pace.
  • Q: Does the CPI report change the forecasts in today's SEP?
    • A: Absolutely not. The SEP reflects any data that comes out during the meeting. Participants can make changes during the meeting. It's never the case the SEPs don't reflect an important piece of data that came in on the first day of the meeting.
  • So those projections DID take the weak Nov CPI report into account, according to Powell.

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