Watch Powell Explain How A 25bps Hike Will Slay Runaway Inflation

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by Tyler Durden
Wednesday, Mar 16, 2022 - 06:30 PM

Watch Fed chair Jerome Powell explain how (and why) a 25bps rate hike will be enough to combat 7.9% inflation.

And while watching his videoconference, which in the past has been meant to offset the kneejerk response to the Fed's prepared statement, here is a cheat sheet to decide if he is leaning hawkish or dovish, courtesy of Newsquawk:

  • Dovish: No B/S normalization calendar guide: walks back on every meeting in 2022 being live for rate hikes and pushes back on 50bps concern over sudden tightening of financial conditions: Ukraine growth shock concerns
  • Consensus: B/S normalization calendar guide every meeting live for rate hikes, keeps door open for 50bps expects inflation to come down this year, albeit later than before
  • Hawkish: B/S normalization details/guide for May start expresses appetite for 50bps hikes ahead front-loaded hikes worried most about inflationary impulses from Ukraine concern over long-run inflation expectations

And for those who can't wait to start drinking, here is your FOMC drinking game:

Watch live below: