Federal Reserve:Meetings/2023 February 01: Difference between revisions

Federal Reserve:Meetings/2023 February 01 (view source)

928 bytes added , 31 January 2023

3,882

edits

@@ Line 6: / Line 6: @@
 === Analyst commentary ===
+Mohamed A. El-Erian argues the Fed should raise rates by 0.50 bps. His main arguments are:<ref>https://www.bloomberg.com/opinion/articles/2023-01-26/why-the-federal-reserve-should-raise-rates-by-half-a-percent</ref>
+* While inflation will indeed continue to come down in the immediate future, its main drivers have been shifting to the service sector, thereby increasing the risk of more embedded price pressures when the labor market remains solid.
+* With global growth surprising on the upside, the window for more orderly rate increases has been opened wider.
+* Financial conditions have loosened significantly in recent months and, by some measures, are around levels that prevailed last March when the Fed initiated this hiking cycle.
+* A faster journey to the peak rate that has already been signaled, and reiterated by Fed officials several times, reduces the complexities of linking the path to a variable destination.
 == Meeting Results ==
 == Assessment ==