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.
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