On the evening of the 17th, "Federal Reserve Hawk" Brad pointed out in an interview with the CNN that quantitative easing will end in March, and that raising interest rates will not bring the risk of recession.
The specific points are as follows:
We want to pursue the best policy possible and let the market adjust appropriately.
The gap between us and the inflation target is more than 300 basis points; the good target is to raise interest rates by about 100 basis points by July 1.
The market has made a lot of pricing and believes that raising interest rates will not bring the risk of recession.This will be the first step forward from loose policy.
The labour market will become tighter; inflation is eating into wage growth.
It is believed that quantitative easing is coming to an end and will end in March.
We are confident that we will come to the right conclusion, but we must act now.
Even if the market is repriced, asset holders will remain in good shape.
Low interest rates bring a degree of prosperity.
Will be more worried about the real estate market.
In an exclusive interview with CNBC on Monday (14th), Brad reiterated his hope of raising interest rates by 100bp before July. He also pointed out that inflation is much higher than expected, and that if inflation does not ease in the second half of the year, the Fed will be "in trouble", and now needs to be prepared for this possibility; the Federal Open Market Committee has not yet agreed on the balance sheet strategy. I hope to start shrinking passively in the second quarter.
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Edit / Phoebe