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  • Without Actually Pronouncing “6%,” Powell Said 6%. Inflation Not Vanquished in June. Even if the Fed Cuts Rates Next Year, QT Could Continue

Without Actually Pronouncing “6%,” Powell Said 6%. Inflation Not Vanquished in June. Even if the Fed Cuts Rates Next Year, QT Could Continue

July 27, 2023

by Wolf Richter Wolf Street

Powell managed to pull the rug out from under some widely held assumptions.

At the post-meeting press conference today, Fed Chair Jerome Powell managed to pull the rug out from under some widely held assumptions:

  • QT could continue even if and when rate cuts begin next year.

  • Additional rate hikes are on the table – “hikes,” plural, not just one more, as per dot-plot projections from the last meeting. Plural brings the top of the rates to 6%.