Fed Chairman Jerome Powell “is a dove among hawks,” economist Diane Swonk says, and investors should pay attention.
Financial markets took one look at the Federal Reserve’s pronouncements on Wednesday, saw nothing disconcerting, and turned their attention to other matters.Digging into the details of the Fed’s projections and dot plot suggests more people within the Fed are concerned inflation will become a larger problem in 2022, Swonk wrote to her clients.
The Fed appeared to be more willing to raise its benchmark interest rate more aggressively than before. The Fed chairman said an announcement on tapering could “easily” happen at the next meeting in November, and it’s not contingent on a “knockout” payroll report.At another point, the Fed chairman said there are interesting signs suggesting “the labor market is very tight.”
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