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Powell On the New Hawkishness in the Dot Plot and On Inflation: “We See That it Tells Us That We Need to Do More”
by Wolf Richter Wolf Street
Core inflation “has not really moved down. It has not reacted much to our rate hikes. We’re going to have to keep at it.”
Renewed hawkish sentiments are building up at the Fed for the second half this year. That’s what we saw today. While the Fed kept rates steady today “to assess additional information and its implications for monetary policy,” the median projection in the FOMC’s infamous “dot plot” today calls for two more rate hikes this year, bringing the top of the range to 5.75%.
Of the 18 members, only two projected keeping rates the same, and 16 projected one or more rate hikes, going up all the way to one member projecting 1 full percentage point in hikes, according to the dot plot (my detailed discussion here).