During his first post-meeting press conference, Fed Chair Jerome Powell managed to signal faster rate hikes over the coming years while simultaneously calming the bond market by playing down the risks of a pick-up in inflation. The problem is that the Fed now sounds a bit too complacent. The updated economic projections are about as goldilocks as you can get, with above-trend growth, the unemployment rate falling to levels not seen in nearly 60 years while at the same time inflation miraculously stabilises around the 2% target. Reality is unlikely to be so co-operative.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services