Monetary Policy & Inflation | US
Hawkish Powell Suggests 50bp at May FOMC Meeting
- By Dominique Dwor-Frecaut
- Sign-up to discuss on Slack
- 4 minutes read
When I published Friday’s DQT Reactions to FOMC Suggest Risk of 50bp at the May or June Meeting the market was pricing 1.5 hikes in May and 3 by June. After Powell’s speech today the market is pricing 1.6 hikes in May and 3.2 in June.
Based on today’s speech, I see a good chance of a 50bp hike in May. This is because the economic case is strong and in today’s speech Chair Powell was much more hawkish than at last week’s FOMC, possibly as a result of the strong push back since then.
When I published Friday’s DQT Reactions to FOMC Suggest Risk of 50bp at the May or June Meeting the market was pricing 1.5 hikes in May and 3 by June. After Powell’s speech today the market is pricing 1.6 hikes in May and 3.2 in June.
Based on today’s speech, I see a good chance of a 50bp hike in May. This is because the economic case is strong and in today’s speech Chair Powell was much more hawkish than at last week’s FOMC, possibly as a result of the strong push back since then.
Subscribe to Macro Hive Professional to read this article
and enjoy exclusive professional features such as in-depth analysis, insightful op-eds, and more.
Already have Macro Hive Professional account? Log in