• Notes From The Desk | FOMC Announcement

Notes From The Desk | FOMC Announcement Jan 12 2022

US Inflation: When you’re hot. You’re hot.

· December inflation 7% with core at 5.5%
· Yesterday, Fed Chair Powell told Congress that it made sense to raise rates sooner to prevent inflation expectations from becoming entrenched
· A March rate hike is almost a done deal.

Omicron might delay lift-off for a meeting, but it is clear the Fed wants to raise rates.
The market is now prepared for up to 4 hikes this year.

This is a remarkable turn of events. It was just a few months ago (September) that Chairman Powell conceded that perhaps only one hike in Q4 of 2022 might be warranted.

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