This level of inflation, combined with falling unemployment and rising capacity utilization, is a recipe for continued preventative rate hikes.
More Quotes from Drew Matus:
It was exactly as the market expected, with them commenting on both the overall good news and the modest areas of weakness left in the economy. The Fed is on hold until August.Drew Matus
Looking ahead, we can't see what is going to cause a downturn of enough significance to take inflationary pressure out of the economy and cause the Fed to stop raising rates.
Drew Matus
Growth is picking up in the labor market. People are returning to work, working longer hours and making more money. This shows that the economy is healthy. Fears of a soft patch were overblown.
Drew Matus
The labor market is hot and getting hotter, and that is one of the reasons the Fed continues to raise rates.
Drew Matus
The Fed keeps trying to walk the middle course, and unfortunately that gives ammunition to people who think the Fed should be raising rates more and ammunition to people who think the Fed should be done.
Drew Matus
The market liked what it didn't see. The market got itself worked up about the Fed possibly being more aggressive about inflation and when that didn't appear in the minutes, investors then focused on a relatively benign view of inflation.
Drew Matus
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