This post originally appeared on March 7, 2023
This morning Jerome Powell spoke in front of Congress, and added to his usual talking points that the Federal Reserve would keep rates higher for longer. Today, noting the strong economic growth and low unemployment, Powell added that the Fed might accelerate rate increases.
People have been calling for a Fed “pivot” since last May. DKI has consistently said that the Fed will eventually pivot to lower rates, but that isn’t coming anytime soon. As of today, Powell agrees. We add to that multiple Fed Governors who have called for an increase back to 50bp rate hikes.
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