The Fed balance was reduced by $183 million in one week!
Waller, chairman of the Fed:
- PCE inflation in March: core - 2.3%, overall - 2.7%.
- Tariffs can quickly lead to an increase in unemployment.
- There is a risk of being late with the Fed reaction if you rely only on the data.
- A rate decrease is possible with an increase in unemployment.
- Tariffs will have a temporary impact on prices, but a slowdown in demand can smooth out the inflation effect.
Daly, the chairman of the Fed:
- The economy is generally healthy, but some sectors are slowing down.
- I support a gradual and careful decrease in the rate.
- The current policy is restrictive and effective, with inflationary expectations around 2%.
- The neutral rate may be higher than before, and the Fed must take this into account.
- The balance can be reduced, but still far from the "sufficient" level of reserves.
GULSBI, FRS chairman:
- Short-term inflationary expectations have grown, but the key is to maintain long-term stability.
- The influence of duties on macroeconomics can be modest, but it is too early to draw conclusions.
- The Fed must wait and observe.
- The rate will be lower in 12-18 months.
- Intervention in the DCT can increase inflation.
Kugler, Fed:
- The pace of inflation has decreased, but still at 2% or even higher.
- Public trust and inflation expectations are still stable.
Hammak, FRS chairman:
- The Fed must be patient, too early for action in May.
- Huge uncertainty makes businesses slow down investment.
- The Fed's interventions - only with real shocks, now a very high bar.
Market expectations (Fed rate):
- May 7: Pause.
- June 18: Decrease by 25 b.p. to 4.00-4.25%.
- July 30: Reduced by 25 b.p. to 3.75-4.00%.
- September 17: Pause.
- October 29: Decrease by 25 b.p. to 3.50-3.75%.
- December 10: Decrease by 25 b.p. to 3.25-3.50%.
- January 28: Pause. #BTC