FHN Financial Economic Weekly
Chris Low, Sophia Kearney-Lederman, Will Compernole, and Mark Streiber
FOMC Preview: Looking for Clues to an Evolving Forecast
After a bruising series of inflation reports in the first quarter, rate-cut prospects are fading. As a result, Wednesday’s FOMC meeting will be less about making policy changes than setting up future ones. The most likely significant announcement might be a change in the pace of balance sheet roll-off, because balance sheet management is no longer a policy decision. Otherwise, any fireworks will come in the press conference, where Chair Powell will be pressed to discuss unexpectedly persistent inflation, fading rate cut expectations and — perhaps — the prospect of rate hikes and stagflation.
